Article by: ETO Markets

As speculative interest waits for the US Federal Reserve to announce its monetary policy, caution is in order. Interest rate policy will probably be maintained by the central bank, but market participants will be watching for signs of impending rate decreases. According to the most recent dot plot, three rate reduction are expected from the Fed this year, with the money markets anticipating the first one in March. Regarding the date, policymakers have been cautious and have declined to clarify when they could take action.

The 4-hour chart reveals that XAU/USD trades essentially unchanged from pre-release levels while being highly volatile around the release of US data. The yellow metal price is currently battling with the 200-SMA, but the 20-SMA gets traction below the current level and below a flat 100-SMA. Lastly, technical indicators fail to offer new information, holding within positive levels but without directional strength. The immediate support awaits around $... The further resistance is around $...