Gold intermarket: eyes $1,296 double top on a break down in US yields, awaiting FOMC

Gold rallied today and extended its recovery from the $1,258.34 lows on the back of the US CPI data and ahead of today's FOMC.

Gold continues to benefit from an unfriendly environment for the greenback as markets get on with unwinding the Trump trade, concerned around the progress the US economy has made and the dilemma that faces the FOMC. US rates are reflecting this, anchored by lower inflation forecasts as seen in the 10 years, down -13.61%  YTD at 2.11% today and down a massive -4.56% just today. DXY is off the low of 96.32 and down -0.51%. 

The Fed meeting is going to get interesting - Commerzbank

For today's meeting, while an interest rate is fully priced in, new information on the imminent end of reinvestments from the Fed’s completed QE programme and the related normalisation of its balance sheet has more potential to move the market, as explained by analysts at Commerzbank. 

Depending on the outcome of today's meeting, Gold would be expected to rally on a dovish statement with a drop in yields and a break of 1280 would eye 1283 4th June highs targeting 1296 double top area. A sell-off to the downside and a break of 1258 recent lows opens 1246 9th April low.

FOMC Preview: 13 major banks expectation from June meeting

We are closing in on the FOMC’s June policy meeting's decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 13 major banks along with some thoughts on the future course of Fed’s action.