COMEX Gold Falls From Two Week High

September 17,2020

Gold hit two week high above $1980 per ounce as the Federal Reserve kept rates unchanged Wednesday, and reiterated that monetary policy would remain accommodative for a prolonged period to support the economy's ongoing recovery. However, the metal flipped back on corrective selling and currently trades at $1946 per ounce, down 1.22% on the day.

Meanwhile, Organisation for Economic Cooperation and Development or OECD has raised its global economic forecast for 2020 as output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses. According to the interim economic outlook report, released Wednesday, the global economy will likely contract 4.5% in 2020 instead of 6% drop fall estimated in June. Output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses but the pace of the global recovery has lost some momentum over the summer months. This rebound in economy is likely to keep safe haven demand for Gold under check.

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