Gold continued to trade within last Friday’s range as price remained largely muted. The FOMC will be concluding its two-day Fed meeting today. We expect no changes to the interest rates but the markets are pricing for at least one rate cut this year. President Trump tweeted for the Fed to cut rates by 1% as the FOMC meeting was underway.
XAUUSD Remains Range Bound for the Moment
Price action in gold suggests that the sideways range established in the medium term is likely to hold. The resistance level is at 1285 while support is established at 1273. A breakout from this range is essential for gold to further establish the direction. The long term trend remains to the downside. A close below 1273 is required to push gold prices lower. To the upside, above 1285, the 1296 level comes into the picture.
