The precious metal rose to highs of 1975 before retreating. Price action is still bullish although the pace of gains is relatively muted compared to the past few days.
For the moment, support is at the 1931 level. If prices break down below this area, we could expect a larger correction to take place.
However, given that gold is now a buy on dips, we could see a rebound higher.
Volatility will, however, pick up heading into today’s FOMC meeting. This will potentially set the short term range in place for the precious metal.