Gold price rebounds ahead of key Fed meeting
|The price of Gold snapped a 4-day losing streak in today’s session, as markets prepared for tomorrow’s Fed meeting.
On Wednesday, the Federal Reserve will meet, with the central banks expected to keep interest rates unchanged.
This comes despite data showing that job openings in the U.S. fell more than expected in June.
Although the Fed has made it a point to use any weaknesses in the labour market as an indicator for policy change, markets expect rates to stay at a range of 4.25% - 4.5%
Today’s move saw XAUUSD rally from its floor of $3,299, climbing to an intraday high of $3,334 earlier in the session.
As a result, Gold has moved away from its lowest point since July 9th, with further rallies expected.
The key barrier to this move will likely be the 49.00 resistance level on the 14-day relative strength index (RSI). Currently at 46.00, should bulls manage to break this ceiling, XAUUSD will likely head towards $3,400.
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