Gold Price Analysis Ahead of FOMC September 18
Fundamental Analysis
On the day of the Fed's announcement, markets continued to price in a 65% chance of a 50 basis point (bps) rate cut, CME Group's FedWatch Tool showed, reviving selling interest around the US dollar (USD), as US Treasury yields also turned defensive amid cautious markets.
As such. Gold prices are attempting to reclaim all-time highs just shy of $2,600, as attention turns to the Fed's decision, Chairman Jerome Powell's press conference and the Dot Plot, all of which will help gauge the US central bank's future policy actions.
If the Fed delivers a 25 basis point rate cut later this Wednesday, it could send the US dollar soaring. However, the immediate reaction to the Fed's announcements could be overshadowed by the implications of the Fed's projections and Powell's words. Therefore, gold prices are still subject to strong fluctuations in the Fed event.
Conversely, if the Fed acknowledges the potential risks to inflation and maintains a cautious tone, this could bring the hawks back into the game, negatively affecting the non-interest-bearing gold price.
Technical analysis
Gold is breaking the downside price band and approaching the resistance level around 2575. If it fails to break this zone before the US session, we can SELL and hold to 255x and 2545 when the FOMC announces to BUY back up and hold to 262x. In case of breaking the 2575 zone, we will not SELL and wait for the candle to close above 258x and BUY when the 2575 zone is retested. Hold until the FOMC does not break the new ATH, then we exit the order.
Breakout upper limit: 2582 - 2591 - 2603
Upper resistance: 2581 - 2590 - 2600 - 2605 - 2615 - 2626 - 2645
Breakout lower limit: 2570 - 2563 - 2550 - 2538
Support: 2572 - 2564 - 2552 - 2545 - 2539 - 2525 - 2516
Pay attention to the trend zone around 2580 above.
Sell the price zone 2603-2605. Stoploss 2609
Watch for BUY 2564 - 2562. Stoploss 2558
Watch for BUY 2545 - 2547. Stoploss 2541
On the day of the Fed's announcement, markets continued to price in a 65% chance of a 50 basis point (bps) rate cut, CME Group's FedWatch Tool showed, reviving selling interest around the US dollar (USD), as US Treasury yields also turned defensive amid cautious markets.
As such. Gold prices are attempting to reclaim all-time highs just shy of $2,600, as attention turns to the Fed's decision, Chairman Jerome Powell's press conference and the Dot Plot, all of which will help gauge the US central bank's future policy actions.
If the Fed delivers a 25 basis point rate cut later this Wednesday, it could send the US dollar soaring. However, the immediate reaction to the Fed's announcements could be overshadowed by the implications of the Fed's projections and Powell's words. Therefore, gold prices are still subject to strong fluctuations in the Fed event.
Conversely, if the Fed acknowledges the potential risks to inflation and maintains a cautious tone, this could bring the hawks back into the game, negatively affecting the non-interest-bearing gold price.
Technical analysis
Gold is breaking the downside price band and approaching the resistance level around 2575. If it fails to break this zone before the US session, we can SELL and hold to 255x and 2545 when the FOMC announces to BUY back up and hold to 262x. In case of breaking the 2575 zone, we will not SELL and wait for the candle to close above 258x and BUY when the 2575 zone is retested. Hold until the FOMC does not break the new ATH, then we exit the order.
Breakout upper limit: 2582 - 2591 - 2603
Upper resistance: 2581 - 2590 - 2600 - 2605 - 2615 - 2626 - 2645
Breakout lower limit: 2570 - 2563 - 2550 - 2538
Support: 2572 - 2564 - 2552 - 2545 - 2539 - 2525 - 2516
Pay attention to the trend zone around 2580 above.
Sell the price zone 2603-2605. Stoploss 2609
Watch for BUY 2564 - 2562. Stoploss 2558
Watch for BUY 2545 - 2547. Stoploss 2541
Note
Gold price attracts fresh buyers on Wednesday amid a modest USD pullback from a one-week peak.
Concerns about an economic slowdown, along with geopolitical risks, lend support to the commodity.
A further recovery in the US bond yields could underpin the USD and cap the non-yielding metal.
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