GOLD managed to break the key resistance at 2010.5$ during yesterday's session, and left the local consolidation, which was related to the rebound on EURUSD. Earlier, the price of this precious metal reacted several times to the support at $1972, which resulted from the lower limit of the 1:1 structure. According to the Overbalance methodology, the upward trend is in force, and breaking the aforementioned resistance at 2010.5$, may open the way for an attack on the recent highs at 2048$. This evening, due to the FOMC decision, volatility on the USD should be elevated, and consequently we should see bigger movements on gold as well.
The decision should not come as a surprise because the market has long been considering the scenario of a 25 basis point hike and keeping the option of another hike in June. Nevertheless, investors will focus on the Fed announcement and the further trajectory of monetary policy. The key question is whether any interest rate cuts are being considered this year.
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GOLD H4 interval. Source: xStation5
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