Gold Price Forecast: 200-Day EMA in Focus Ahead of Fed

Gold Technical Analysis

The gold market has drifted a little lower during the trading session, and it looks like the 200-day EMA is trying to hold as support. Ultimately, this is a market that I think is going to get some answers in the next 24 hours, as the Federal Reserve has its interest rate decision and, perhaps more importantly, the press conference giving us a bit of an idea as to what the future may hold for the Federal Reserve and what it wants to do as far as interest rate policy.

If it sounds quite a bit more hawkish, that could be a reason for gold to continue to drop on a bounce from here. Though, we could be looking at a continuation of the consolidation that we had been in for a while. This makes sense, as oil inflation is a major driver of pricing in various markets, and that situation still remains messy, to say the least.

Gold Stalls Near 200-Day EMA Ahead of Fed Press Conference

The market still looks at the $4,500 level as potential resistance, I suspect. As we are dancing around the 200-day EMA, which is relatively flat, we are just hanging around trying to figure out whether or not we have any momentum in one direction or the other. This makes sense, as the markets must prepare for what could be a new regime for monetary policy.

In the short term, I anticipate this is a market that probably just flounders a bit, waiting for that vital press conference on Wednesday. This is a market that is simply waiting for its next instructions as to how things might go.

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