Market Spotlight: Gold At Key Support Ahead of FOMC

38601 market spotlight gold at key support ahead of fomc

FOMC Up NextThe FOMC meeting later todayholds the potential to be a key, near-term catalyst for FX price action. Withtraders expecting the Fed to hike rates by .5%, the focus now will be one theaccompanying guidance issued alongside the rate decision. Should the Fedmaintain its recent hawkishness, focusing on the need to normalise policy so asto battle inflation, USD is likely to remain supported near term. However,should we see any moderation in the tone of the Fed’s assessment, particularlyin light of the Q1 GDP miss, this will likely weigh on USD in coming sessions.Where to Trade the May FOMCMeeting? XAUDUSDThe recent move lower in Goldcan be seen as a corrective leg against the longer-term bull trend. Price iscurrently hovering around support at the 1871.04 level, with firmer supportbelow around the bull channel bottom and the 1826.71 level. While this areaholds as support, the focus remains on an eventual continuation higher. Bullscan look for a move through 1919.92 as confirmation, targeting 1958.82initially and 2014.32 there above.

Source: Tickmill

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