Speculation that the FOMC could hint at the taper timing at its monetary policy decision this Wednesday, is allowing the dollar to hold onto its recent rally at the expense of gold.
With gold’s ongoing sell-off, the path opens up for a test of the 200-Daily Moving Average , located at $1840 after the bulls breached the critical ascending trendline support at $1879.
Gold licks its wounds around $1,864, following the drop to weekly/monthly low surrounding $1,860, ahead of Monday’s European session.
The indecision over Wednesday’s Federal Open Market Committee magnified following another upbeat US data, namely Michigan Consumer Sentiment Index.
Also on the same line could be the mixed releases of the latest US employment data and chatters over the supply crunch portraying a short-term challenge to the price pressure.
Other than the pre-Fed jitters, the Western push to reinvestigate covid origins and dislike for China’s performance in Xinjiang and Hong Kong, per the latest Group of Seven meetings, should also favor the USD, which in turn weighs on the gold prices by the press time.
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Strong US data, stimulus woes and G7 on China keep investors on the edge ahead of FOMC.
This rejection and the lack of buying pressure have played a role in preventing the rise of ETH price.
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