Gold Moves Higher As Traders Wait For Fed

Key Insights

• Gold gains some ground ahead of the Fed Interest Rate Decision. 
• Trading action will likely remain choppy as traders wait for Powell’s comments. 
• A move above $1880 will push gold towards the resistance at $1890.

Gold Continues To Rebound

Gold managed to get above the resistance level at $1865 and is moving towards the next resistance at $1880, while traders wait for the release of the Fed Interest Rate Decision.

Today, the U.S. dollar lacks momentum against a broad basket of currencies. Trading action is also calm in the U.S. government bond markets. Everyone is waiting for the Fed decision and the subsequent commentary from Fed Chair Jerome Powell, which will have a significant impact on markets.

Gold markets have recently found themselves under significant pressure as yields were rising and traders prepared for an aggressive reduction of Fed’s balance sheet. In case Powell is not too hawkish, gold will have a chance to rebound.

Meanwhile, VanEck Gold Miners ETF managed to settle back above the $35 level during yesterday’s trading session. Today, VanEck Gold Miners ETF will be extremely sensitive to Fed’s commentary.

Technical Analysis

Gold continues its attempts to settle above the resistance level at $1865. If gold manages to settle above this level, it will move towards the next resistance, which is located at $1880.

A move above the resistance at $1880 will open the way to the test of the resistance at $1890. In case gold settles above this level, it will head towards the next resistance at $1900.

On the support side, a move below $1865 will push gold towards the next support level at $1850. In case gold moves below this level, it will head towards the support level at $1830. A move below the support at $1830 will open the way to the test of the next support at $1815.

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