Gold inter-markets: Out of sync with intrinsics, BOJ, Fed eyed for next direction

Gold has been trading comatose for most of the European session so far, oscillating back and forth near 5-DMA, as traders prepare for the highly influential twin events for this week, the BOJ and Fed monetary policy decisions, scheduled tomorrow.

It’s widely expected that the Japanese central bank will ease policy further by slashing rates deeper into the negative territory. While the Fed is expected to keep the policy steady this month, in wake of recent streak of downbeat US fundamentals. However, it’s worth noting that the BOJ decision is anyway going to overshadow the Fed event.

On the intrinsic valuations side, gold is seen moving in separate ways with most of its intrinsic, especially with the latest move higher in the USD/JPY pair not justifying the ongoing range-play seen in gold prices. While the US dollar also extends its directionless trading into the mid-European session, offering little help to the USD-sensitive gold.