Article by: ETO Markets

US officials reported on Sunday that an unmanned aerial drone strike on US forces stationed in northeastern Jordan, close to the Syrian border, resulted in the deaths of three US soldiers and numerous injuries. Gold is a safe-haven investment that may benefit from the increasing tension in the Middle East.

Ahead of the Bank of England's interest rate announcement on Thursday, this week's major event will be the FOMC meeting on Wednesday. These occurrences might provide the gold price with a definite direction.

The gold price is still moving sideways within a narrow range while the world's attention is focused on the Fed's upcoming announcement about interest rate policy next week. It is difficult for the precious metal to stay above the 20-DMA, which is currently trading around $…. The further resistance will await at $…. If the yellow metal price falls below the psychological support of $…, new downside would emerge.