FXStreet (Mumbai) – Gold trades in the sideways manner as investors avoid making big bets ahead of the US Fed policy statement due for release later today.
Focus on FOMC
There is widespread belief that the Fed would stay non-committal with regard to the timing of rate hike, while putting more emphasis on the overseas turbulence. Moreover, the financial markets across the globe have consolidated ahead of the Fed statement.
The USD index is trading largely unchanged on the day at 96.75, while the treasury yields have flattened out as well. Consequently, the metal traders lack fresh cues, thereby leading to consolidation in the narrow range of USD 1095-1100/Oz.
It remains to be seen if the Fed stays non-committed or comes out slightly hawkish by ignoring overseas turbulence.
Gold Technical Levels
The immediate resistance is located at 1100, above which gains could be extended to 1105.93 (July 23 high). On the other hand, support is seen at 1095 and 1088.34 (July 27 low).
(Market News Provided by FXstreet)