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Rangebound Ahead Of FOMC Decision On Wednesday

GOLD
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Gold is 0.3% lower in the Asia-Pacific session, after closing 0.1% lower at $2335.66 on Monday.

  • The yellow metal remains rangebound ahead of Wednesday’s FOMC decision, where policymakers are anticipated to reiterate their commitment to maintaining higher interest rates for an extended period.
  • Historically, gold tends to react negatively to higher interest rates due to its lack of yield-bearing characteristics.
  • Nonetheless, bullion is on track for a third straight month of gains due to strong central bank and haven demand.
  • According to MNI’s technicals team, gold remains in consolidation mode. Having last week pierced the 20-day EMA, a continuation lower would signal scope for an extension towards $2238.8, the 50-day EMA. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high.
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Gold is 0.3% lower in the Asia-Pacific session, after closing 0.1% lower at $2335.66 on Monday.

  • The yellow metal remains rangebound ahead of Wednesday’s FOMC decision, where policymakers are anticipated to reiterate their commitment to maintaining higher interest rates for an extended period.
  • Historically, gold tends to react negatively to higher interest rates due to its lack of yield-bearing characteristics.
  • Nonetheless, bullion is on track for a third straight month of gains due to strong central bank and haven demand.
  • According to MNI’s technicals team, gold remains in consolidation mode. Having last week pierced the 20-day EMA, a continuation lower would signal scope for an extension towards $2238.8, the 50-day EMA. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high.