Gold keeps hovering around $1200 no matter what

Gold is about to end the day unchanged as it trades around $1,198 an ounce. Earlier today climbed to $1,204 but only to retreat hours later back below $1,200. The metal continues to move sideways around the $1,200 area without a bias. 

Without a clear breakout above $1,210 or below $1,190, the consolidation phase is likely to continue. The main trend in the weekly chart still points to the downside but shows no strength at the moment. 

Price action across financial markets was slow on US hours amid lack of new economic information and ahead of Wednesday’s FOMC meeting.  A rate hike is priced in, but the outlook and FOMC projections are likely to create volatility. 

Technical outlook 

“The metal maintains a neutral stance according to the daily chart, as the price remains stuck to a flat 20 simple moving average, while the Momentum indicator eases around its mid-line and the RSI consolidates at 49”, says Valeria Bednarik, Chief Analyst at FXStreet.

In the short term, according to her, the 4 hours chart, shows XAU/USD developing within a congestion of directionless moving averages and the Momentum indicator advancing below 100 and the RSI moving south, at 46, “also failing to provide directional clues.”