Gold Price Forecast – Gold Quiet Ahead of the FOMCGold markets went back and forth during the course of the trading session on Tuesday as we continue to see hesitation before the FOMC.
Gold markets have been relatively quiet during the trading session on Tuesday as we await the FOMC decision on Wednesday. Ultimately, this is a market that will move back and forth with the US dollar, so therefore it should not be a huge surprise to see it relatively directionless. From a longer-term standpoint though, it certainly does look as if the 200 day EMA underneath at the $1822 level has been supportive and will more than likely continue to be. The choppy behavior over the last couple of days should not be a huge surprise, as we are essentially stuck between the 50 day EMA and the 200 day EMA, which typically means a lot of back and forth.
Gold Price Predictions Video 27.01.21
If we can break above the 50 day EMA which is just above at the $1870 level, then it is likely that gold will go looking towards the $1900 level. This is probably the base case scenario, simply because Jerome Powell will not want to do anything to upset the financial markets to the downside, the $1822 level probably continues offer support. Even if we broke below there, I think that the $1800 level comes into play for support, followed by the $1750 level. If we were to break down below there, then I would anticipate that gold would sell off quite drastically.
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The US Dollar Index is testing relatively extreme lows, so a bounce in the US dollar could be somewhat negative for the gold market, but at this point in time it is but a sideshow as we will have to wait to see what the Federal Reserve is about to say.
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