Gold prices are likely to remain volatile
The USD/JPY remains the most intriguing forex among investors and traders. The factor driving the price here is the disparity in the two central banks’ monetary policies. However, something important has surfaced that traders do need to pay close attention to, and that is a former Japanese finance ministry official said that there is a possibility that a unilateral intervention is possible. Remember, the BOJ is holding and maintaining its monetary policy stance, driving the move to a multi-year high for the USD/JPY. If there is a unilateral move from the BOJ to stem the current sell-off, we could see strong support for the Japanese currency.
The Turkish Lira will also be in focus today as the Turkish Central Bank is expected to announce its monetary policy decision today. We expect the bank to hold its fire and maintain its interest rate at 14% today. Any surprise interest rate by the central bank will catch traders off guard, and we could see significant wild moves for the Lira.
Gold prices are likely to remain volatile while more and more traders think there are fewer chances of gold prices taking a nosedive because inflation is likely to remain an anchor for longer. The most critical support level for the gold price is near the 1,800 price mark, and as long as the price continues to trade above that price mark, the path of the least resistance is skewed to the upside.