Gold failed to capitalize on the gains it has made and continued to flirt around the $1,800 mark.
Gold started the day on the right foot but could not keep the momentum, capitalizing on the negative sentiments surrounding USD and ended up loitering around the $1,800 mark just like it did in the last week. Earlier in the day, the yellow metal had touched the $1,810 level during European trading hours. This failure of Gold to carry on the momentum is pointing towards a continued disinterest among investors and fear of another pullback.
Continued risk-off sentiment may help gold move higher; however, any lasting liquidation will strengthen the USD and might put a cap on the gains made by gold. In that process, if the price of gold closes below the $1,800 level, then that will trigger a sell off by traders which will pull the price further down to $1,790.
In short, gold is under pressure and all eyes are on today’s Federal Open Market Committee (FOMC) meeting. Look at the chart below:
If it cannot maintain the $1800 level, the price may fall down to $1,787. On the other hand, if bulls put up a good performance, then gold can reach even up to the comfortable level of $1,824.