The precious metal is breaking out from its recent range following the conclusion of the FOMC meeting on Wednesday.
Price action has been broadly consolidating near the 1850 levels over the past few sessions. However, from late Wednesday gold prices managed to break out from their range closing above the 1850 handle. This has led to a strong intraday rally.
Gold prices are on track to test the 1900 level for the moment. If this resistance level holds, then gold prices could drop back to the 1850 level.
Alternately, if the 1900 level gives way then gold prices could be looking towards posting further gains in the short term.
