Gold prices are trading lower on Wednesday morning ahead of the FOMC meeting today at 18:00 GMT. The Fed recently announced that slow inflation figures
Gold prices are trading lower on Wednesday morning ahead of the FOMC meeting today at 18:00 GMT.
The Fed recently announced that slow inflation figures are temporary and indicated its plan to raise rates at least once more this year.
On Tuesday, Gold prices dropped overnight from around a month’s highest as traders will try to get any inputs from the Federal Reserve’s policy meeting on the next rate hikes and on US balance sheet.
Technical Outlook
Gold 100 day moving average crossed above the 50-day moving average as seen in the chart which indicates that price action is still in a bullish trend.
Gold Daily Chart
As predicted, prices reached $1246 with a correction to the the uptrend move. The next support will be at $1237-$1240 levels while resistance is seen at $1260. A break above could enable the rally towards $1300.
