GOLD & CRUDE OIL TALKING POINTS:
GOLD COULD FALL FURTHER AS US DOLLAR GAINS AFTER FED MEETING.
Commodity prices pause as all eyes turn to FOMC policy announcement. GOLD may fall as fiat appeal INCREASES amid USD rebound. Crude Oil price is vulnerable if EIA inventory data echoes API projection. Commodity prices marked time in Tuesday trade, with investors seemingly unwilling to commit to a directional bias before the much-anticipated FOMC monetary policy announcement crosses the wires. The standstill was broad-based, with the bellwether S&P 500 stock index marking time in familiar territory and the US Dollar little-changed against its major counterparts.
Fed Chair Jerome Powell and company are widely expected to issue an interest hike. Indeed, the priced-in probability of such an outcome implied in Fed Funds futures is 95 percent. The likelihood of a further increase in December is pegged at 78.6 percent. Absent a highly improbable dovish about-face from the rate-setting committee, that puts the spotlight on the 2019 policy path.