Gold Trades Choppy – Investors Await FOMC Meeting!
What’s up, traders.
The precious metal gold continues to trade sideways as the dollar stood steady ahead of the two-day US Federal Reserve meeting starting later in the day. As discussed earlier, the only thing investors are waiting for is the FOMC meeting and the Fed Rate Hike, as it’s widely expected to increase from 2% to 2.25%.
In response to the forecast, traders are taking bullish positions in the dollar, and higher demand is increasing its worth. This is why we are seeing a bearish pressure on yellow metal gold.
In addition to FOMC, the simmering US-China trade strains are keeping investors nervous about risks to global growth. Yet, investors are moving their funds into the dollar on the hope that the US has very less to lose in this trade war.
The technical side of the market is totally neutral. Gold is going nowhere, but is trading in the tight range of $1,194 – $1,208. The immediate support prevails at $1,198 and gold can stay bullish above this level to target $1,204 and that’s exactly what I’m looking to capture today.
Later today, we have US consumer confidence data which may drive some volatility in the market and trading signals for us. Good luck and stay tuned!
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