The pair of gold/ USD at yesterday’s session recorded an expected loss as the U.S. dollar has made a strong report, issued by the Federal Reserve Bank showed that business conditions index rose to 7.8 from -1.4. On the other hand, the price movement will become narrower, and traders are not interested enough in moving too much on the basis of the balance of risk before the Fed meeting, which lasts for two days and is going to begin today. Without a doubt, the results of the meeting of the Federal Open Market Committee will be the next big catalyst for the market.
The yellow metal are under pressure amid expectations that the Fed will slow down the asset purchase program. Investors began with the belief that, the Fed will adjust the pace of asset purchases monthly. Which is $ 85 billion, against the backdrop of changes in the economic outlook, but investors did not think that the recent economic data was good enough to stimulate any type of change in fiscal policy. However, we had a possibility that the decision-makers have surprised the markets.
According to the weekly report of the Special Commission on commodity futures trading, the market participants seem to lose hope in the upward movement for gold, that is why the market did not expect that there will be a significant change in the pattern soon. Technically, it is more logical to wait until penetrate this narrow range. The resistance level at $1400 USD/ Ounce is the first vital level for the upward movement. If they were able to hack and stability above this level, it is possible to see a bullish move targeting the level of $1442 USD/ Ounce. In that case, expect to see strong resistance at $1420 and 1430 USD/ Ounce. Down movement which is more expected in the next few hours, support will be at $1374, 1370 and 1360 USD/ Ounce.