Article by: ETO Markets

Even with the increase, the price of gold is still stuck in the same range it has been in since the start of this week as investors wait for additional information regarding the Fed's rate-cutting strategy before making new directional bets. As a result, bullish traders should exercise care in light of the daily chart's ongoing overbought conditions and the two days of the FOMC meeting that begin on Tuesday. Meanwhile, the US economic schedule for Friday, which includes the preliminary Michigan Consumer Sentiment Index, and Industrial Production data, may offer some encouragement on the final day of the workweek. 

If the price of gold continues to drop, it is expected to find some support near $... If this happens, the price of gold may fall faster to the next significant support, which is likely to be near $... The round number of $… could serve as a solid base for the XAU/USD if the corrective decline continues.

Conversely, the $… region appears to have formed a significant barrier that, if broken, should enable the price of gold to challenge the record top, which was touched last week in the $… range. The scenario will be set for the uptrend that has been in place since the beginning of this month to resume with some follow-through purchasing above $...