- Gold has recovered from 10-day lows seen on Friday but may lack clear direction on caution ahead of the FOMC rate decision, due Wednesday.
- The yellow metal will likely take a beating if the Fed sounds more hawkish-than-expected, squashing bets of a Fed rate hike pause in 2019.
Gold is currently trading at $1,237 per Oz, having hit a low of 10-day low of $1,233 on Friday.
The yellow metal fell close to 2 percent last week as the American dollar - its biggest nemesis - picked up a haven bid last Monday and rose to a fresh 2018 high of 97.71 on Friday.
The greenback will likely extend the rally later this week, sending gold lower, if the Federal Reserve sounds less dovish-than-expected. Markets expect the central bank to hike rates by 25 basis points (priced in) and signal a wait-and-see approach for 2019.
A few months ago, the central bank signaled three rate hikes for 2019, something which markets did not buy.
Gold, however, could rise well above the 200-day moving average (MA) hurdle of $1,256 if the Fed cements expectations of a rate hike pause in 2019, sending the treasury yields and the US dollar lower.
Gold Technical Levels
Today Last Price: 1237.79
Today Daily change: -67 pips
Today Daily change %: -0.0541%
Today Daily Open: 1238.46
Previous Daily SMA20: 1231.6
Previous Daily SMA50: 1226.21
Previous Daily SMA100: 1213.59
Previous Daily SMA200: 1231.25
Previous Daily High: 1243.19
Previous Daily Low: 1233
Previous Weekly High: 1250.85
Previous Weekly Low: 1233
Previous Monthly High: 1237.4
Previous Monthly Low: 1196.4
Previous Daily Fibonacci 38.2%: 1236.89
Previous Daily Fibonacci 61.8%: 1239.3
Previous Daily Pivot Point S1: 1233.24
Previous Daily Pivot Point S2: 1228.02
Previous Daily Pivot Point S3: 1223.05
Previous Daily Pivot Point R1: 1243.43
Previous Daily Pivot Point R2: 1248.4
Previous Daily Pivot Point R3: 1253.62
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.