Article by: ETO Markets

The US Federal Reserve is anticipated to continue its hawkish policies and keep interest rates unchanged at its May meeting. Now, the expectations for Fed easing have been further delayed, with the likelihood of a June rate cut decreasing to about 10% and the likelihood of a September rate cut falling below 75%. Following the Fed meeting, investors will pay closer attention to the press conference. The Fed's aggressive stance might strengthen the US dollar and make non-yielding metals less appealing. 

The important daily support line's fall breach and the bearish RSI signal imply that the price of gold is moving in the direction of least resistance, which is down. The 50-DMA at $… will be tested below the psychological $… level, where there is immediate support.

Conversely, any significant recovery in the price of gold will only occur if acceptance rises beyond the crucial DMA-20 of $... The $… round level and the $… mark are the next significant topside hurdles.