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FOMC And Gold Price Action

Published 05/25/2022, 02:10 AM
Updated 07/09/2023, 06:31 AM

Gold 

Looking at the gold price, the precious metal is certainly making a comeback as higher inflation doesn't seem to be going away anytime soon because oil prices aren't coming down overnight.

Another reason we have seen a rally in the gold price is that traders are not anticipating the Fed to be overly hawkish. However, that could change.

For instance, if economic readings begin to alter their prints, and we begin to get more positive price action for the dollar index, the gold price could fall.

The FOMC Minutes will be the key event for the gold price, and in terms of the price levels, traders are keeping a close eye on a couple of critical price levels: Support at 1812; a violation of that price could bring further weakness for gold. As for the upside, watch the 1,900 resistance level.

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