The strong gains witnessed in gold is seeing a shift as price turns rather flat. The precious metal has been trading weaker. This comes as investors are now discounting just a quarter basis point rate cut. However, a lot will depend on how dovish the Fed will be at this week’s meeting.
XAUUSD Likely to Maintain a Flat Range
The precious metal has been consolidating near the resistance area of the 1431–1428 region. Price is likely to remain at these levels into Wednesday’s FOMC meeting. As a result, there is a downside risk that XAUUSD could slip to the 1404 level where support has been initially established. In the near term, we expect gold to hold flat ahead of further market developments.
