Gold (XAU/USD) dropped on Tuesday but held within its recent trading range between $1800-$1765. This Wednesday, nothing seems to have changed for the yellow metal, as the US dollar trades firmer while the yields hold onto the recent advance ahead of the FOMC monetary policy decision. A test of $1800 or $1750 on the FOMC decision? That is the question, FXStreet’s Dhwani Mehta informs.
Fed’s decision to trigger a fresh direction in gold, Biden’s speech also eyed
“Although the Fed is unlikely to alter its policy stance, investors will pay close attention to any hints on a likely tapering of the bond-buying program, given the optimism over improving economic outlook.”
“The focus will also remain on fresh updates on the fiscal stimulus, as Biden is set to address Congress later on Wednesday.”
“Buyers continue to lurk on every dip towards the 21-DMA. The 100-DMA and 21-DMA lie at $1801 and $1753 respectively. Gold’s fate hinges on the Fed’s announcements while acceptance on a break of either of the two barriers could trigger sharp moves.”
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