Article by: ETO Markets

While traders anticipate the Federal Open Market Committee's decision, the non-yielding metal stays muted. Apart from releasing the monetary policy statement, officials are anticipated to revise their forecasts for the US economy. Traders are on edge due to growing concerns that the Federal Reserve may lower its predictions for the Federal Funds Rate.

The price of XAU/USD has levelled off ahead of the FOMC announcement, remaining above the first support level at $…, the peak from December 4. A dovish turn by the Fed may open the door for a bounce back toward the $… high from March 8 and the $… level. 

However, if gold price falls below $…, watch for a breach below the high of December 3rd, which would expose the low of $… on March 6th, followed by $...