The gold bulls could be given a huge surge of momentum this week, with many market analysts and media outlets speculating that the Federal Reserve could be about to take its foot off the gas and slow the pace of punishing rate hikes.
The monthly FOMC meeting will draw to a close later today (Wednesday) so confirmation of a policy pivot could come as soon as this afternoon.
Although the latest inflation data confirmed that core inflation was up 5.1% in September, the Federal Reserve is itself losing billions of dollars of value on its holdings thanks to falling bond prices and greater interest payments on reserves held for central banks. This could prove enough of an incentive for it to change course, freeing up the gold bulls for a run to new highs.