Gold traders are cautious
|Gold
The precious metal gold price is losing its mojo as traders are hesitant to place any big bets ahead of the Fed meeting. The Federal Reserve is expected to announce its monetary policy decision tomorrow, and market players are widely expecting no change in their monetary policy. However, what traders are concerned about is the pace of their asset purchase program, as there is some evidence of those purchases losing some momentum.
Another factor that is also likely to influence the gold price is the outlook of the US economy presented by the Chairman of the Federal Reserve, Jerome Powell. It is likely that we may see some hint of bullish views in the Chairman’s view because if we look at the new orders’ data, they saw a solid increase in March, and this gives further evidence that economic growth is accelerating in the US. If we do see any hint of overconfidence in his approach, traders are likely to take that as a clue, and that can spur a rally for the dollar index which could be negative for the gold price.
As for the technical price, the resistance is at $1,800, and only a break of this level will assure investors that we may see a move towards the next technical resistance of $1,850. However, if the price fails to break above this, we could see the gold price revisiting the $1,750.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.