Gold Price Outlook: XAU Embraces Resistances As Fed Decision Looms

Gold Prices Stall Ahead Of FOMC – Fed Fever Looms

Gold prices have recently been trading within a well-defined range as investors shift their focus to the highly anticipated FOMC rate decision and other key economic data expected to be released this week.

Gold Price Outlook: XAU Embraces Resistances as Fed Decision Looms

DailyFX Economic Calendar

Although Gold and Silver hold a reputation as an inflationary hedge, soaring energy prices and positive employment figures have placed pressure on central banks to raise rates more than prior expectations, therefore hindering gold’s ability to climb higher.

With markets currently pricing in the probability of approximately three rate hikes next year, a more hawkish or dovish tone from the Fed (Federal reserve) may provide an additional catalyst for price action which could potentially drive Bullion out of its current range which has persisted since last month.

Gold Price Analysis:

At the time of writing, Gold prices are trading within a confluent zone, between key Fibonacci levels of both the 2020 and 2021 move.

After falling below channel support late last month, US Dollar strength and expectations of rate hikes have allowed bears to drive price action back towards critical support, currently holding firm at the key psychological level of $1,760 which coincides with the 50% retracement of the 2020 move.

Meanwhile, the commodity channel index (CCI) has fallen back towards the lower bound of the range, a potential indication that the downward trajectory may continue to persist, at least for now.

Gold Daily Chart:

(Click on image to enlarge)

Gold Price Outlook: XAU Embraces Resistances as Fed Decision Looms

Gold Sentiment:

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Gold Price Outlook: XAU Embraces Resistances as Fed Decision Looms

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