The precious metal managed to post some modest gains on Tuesday but price action remains subdued. This indicates that investors are likely to wait on the sidelines into today’s Fed meeting. Economic data on Tuesday saw US inflation slipping below the Fed’s 2.0% inflation target rate.
Outlook for XAUUSD Remains Mixed
Price has stalled near the resistance area of 1431–1428 on the 4-hour chart. If this resistance holds, we could expect to see a downside breakout. However, given the volatility, we could expect a short term rebound to the upside. The previous highs near 1440 levels remain key. To the downside, a breakdown of the rising trend line could signal a move to 1404 level of support.
