Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Gold Price Retreats to Support Ahead of Pivotal FOMC Meeting

Gold Price Retreats to Support Ahead of Pivotal FOMC Meeting

Peter Hanks, Strategist


What's on this page

Gold Price Forecast:

Gold Price Retreats to Support Ahead of Pivotal FOMC Meeting

Gold prices ticked lower to start the week as traders anxiously await the looming Federal Open Market Committee meeting due Wednesday. The event, which has been lauded as the top event risk of the month by many, possesses the potential to spark considerable market volatility and upend recent price trends. Gold may be exceedingly vulnerable to post-FOMC price movements as Treasury yields and the US Dollar have longstanding influence over the precious metal.

Gold Price Chart Posts Bullish "Golden Cross" Formation, Will it Rally?

As a result, the bullish technical formation gold enjoys could unravel should the Fed reveal a hawkish lean. The “golden cross” formation gold posted last week is the most recent sign of potential gains in the future, but gold’s price action in the week thus far suggests the recovery rally that began in late March could be in peril.

Gold (XAU/USD) Price Chart: Daily Time Frame (July 2020 - June 2021)

gold price chart

How to Trade Gold: Top Gold Trading Strategies and Tips

To that end, the line in the sand for gold’s recovery rally likely stands around the $1,850 area. Adjacent to the descending trendline that support is originally derived from is the metal’s 50-day simple moving average (SMA), its 200-day SMA and a Fibonacci level. Together, the various technical markers create an area of considerable support that, if broken, would constitute a significant shift in the technical outlook.

The Quiz
Discover what kind of forex trader you are
Start Quiz

With that in mind, all eyes turn to the upcoming FOMC meeting at which the central bank will offer crucial insight on their projected policy path, inflation expectations and economic forecasts. Should market sentiment shift or the Fed change its policy path, gold’s recent recovery rally could come to an end if price slips back into the descending channel from August. Until such a breakdown occurs, however, longer-term strength remains a possibility. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.