Gold continues to be traded in a very narrow price range, awaiting the outcome of the FOMC meeting, which will be held this week.
Most investors expect the Fed to reduce the rate by 25 bp, which in theory helps to strengthen gold, due to the decline in the dollar and the yield of US government bonds. But, according to many experts, this event is already fully taken into account in the current price, so the possibilities for strengthening gold remain limited.
The situation with further trade relations between the USA and China remains unclear, which also has a restraining effect on the dynamics of the market. On Tuesday, US Trade Representative Robert Lightheiser and Finance Minister Stephen Mnuchin will arrive in Shanghai, where they will meet with Chinese Deputy Prime Minister Liu He, but according to information sources, this meeting should not be expected as a breakthrough in resolving issues that impede a trade agreement.
Therefore, while investors have taken a wait and see attitude, they behave in the market rather passively. Today there are no important events in the economic calendar, so the main influence on gold will be the stock markets and the debt market.
On the graph, the situation has not changed significantly. The price continues to move within the framework of the outset, with borders at the levels of 1415.00-1428.00. Today we expect further development of the movement in this range.
Resistance Levels: 1428.00, 1438.00, 1450.00;
Support levels: 1415.00, 1400.00, 1383.00.
The main scenario - the outset in the range 1415.00-1428.00.
An alternative scenario - the breakdown of support at 1415.00 and a decline to 1400.00.
Today we expect the further development of the outset 1415.00-1428.00. Entry points to the market should be considered from the boarders of this range.