Gold traded in a $1695-1705 range overnight....>

GOLD: Gold traded in a $1695-1705 range overnight and at writing sits little

changed at $1698/oz.

- The focus for the yellow metal now turns to the Fed with tomorrow's FOMC

decision the main driving factor.

- The Fed is set to begin pivoting from crisis management to recovery mode at

the June FOMC. Not only do we get its first economic forecasts since December,

giving a glimpse of how FOMC members see the post-COVID economic landscape, but

the Fed could take action on new policies it has been mulling. These include

yield curve control, stronger and more specific forward guidance and shifting to

a more formal QE programme rather than week-to-week purchases.

- From a technical perspective, our analysts notes that last week's pullback

after the US employment report has led to bearish risks, with a deeper fall to

the April 21 low of $1659.6 possible. In order to ease bearish risks, $1721.5,

the June 4 high, must be cleared.