FXStreet (Mumbai) – Gold prices continue to trade in the sideways manner around the daily low of USD 1117/Oz levels as investors fearful of hawkish Fed stay on the sidelines ahead of the rate decision due later today.
Will Fed stay hawkish?
The policymakers have remained silent on the latest financial market turmoil and have repeatedly said the outlook is largely unchanged since December rate hike. Furthermore, with hawk like Esther George, Mester and Neutral/hawk Bullard joining the voting list this year, the FOMC may tilt on the hawkish side.
However, the market believes the Fed would take a note of the financial market instability and play down the rate hike bets. Overall, it appears the markets and the Fed officials are not in the same page, which may be the reason for the lackluster action in the metal.
Gold Technical Levels
The immediate support is seen at 1113.15 (Jan 8 high), under which the prices could drop to 1105.08 (50-DMA). On the other hand, a break above 1122.95 (previous day’s high) would open doors for a rally to 1136 (61.8% of Oct high-Dec low).
(Market News Provided by FXstreet)