Fed Chair Janet Yellen is scheduled to hold a press conference at EST 2:30 PM on Thursday to elaborate on the economic outlook and policy statement.

Published here: http://goldsilverworlds.com/economy/fed-chair-janet-yellen-scheduled-hold-press-conference-est-230-pm-thursday-elaborate-economic-outlook-policy-statement/

The Federal Reserve will inaugurate the Trump era this week with a near-certain interest rate increase and new economic forecasts providing a first glimpse into whether the U.S. election has reshaped the central bank’s growth and inflation outlook.  Fed officials have long hoped that other government policies would take the place of monetary engineering, which some believe may have lost its effectiveness in lifting economic growth.
They have warned in recent weeks that any new government spending should specifically be designed to boost productivity in an economy that is already near full employment and facing a high public debt burden.

As possible rate hike is already on card we see major impact on Gold. Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.  The Fed is also expected to announce updated economic forecasts and markets will be watching for signals the outlook for inflation and the expected pace of rate hikes in 2017.

Impact on MCX Gold Prices

If we see MCX Gold Feb 2017 expiry contract, in last 6 weeks, market have corrected from recent top of 31376 towards current market prices of 27415. As rates decision turns out to be negative for Gold, we may heavy selling pressure on market and a sharp decline till 25823 cannot be denied which turnout be an immediate support zone.

In case market breaches the support zone of 25823 then sharp decline is possible till 24669 on chart. Market may remain negative for short to medium term as long as it remains below 28463 i.e. immediate resistance on chart

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