Gold Paring Gains Ahead of the Fed
2023.07.25 05:20
- Fed could be the next big catalyst as markets prepare for one more hike
- A break of $2,000 could be a bullish development
appears to be pausing for breath ahead of the Fed meeting on Wednesday.
Economic data recently has given the yellow metal a big lift, with the price coming close to testing $2,000 at one stage last week. We’ve seen some profit-taking since then which has seen it pull back toward $1,960 but it’s hard to read too much into these moves.
Ultimately, the Fed will determine what happens next in gold. Any strong signal on this being the final hike, or shock decision not to, could be bullish for gold and even see $2,000 put to the test. A move above here could be viewed to be very bullish, both from the psychological and technical perspective, with it being the 61.8% Fibonacci retracement of the May highs to June lows.
Daily
XAU/USD Daily Chart
Source – OANDA on Trading View
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