Gold is currently trading at around $1,960 with slight gains as it prepares for the FOMC meeting.

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• Gold price trades with modest gains around the $1,960 mark ahead of the FOMC meeting.

The pair currently trades last at 1961.32.

The previous day high was 1967.94 while the previous day low was 1953.53. The daily 38.2% Fib levels comes at 1959.03, expected to provide support. Similarly, the daily 61.8% fib level is at 1962.44, expected to provide resistance.

Gold price trades with modest gains during the Asian session on Tuesday. XAU/USD currently trades around the $1,960 mark, up 0.36% on the day. Investors await the Federal Open Market Committee (FOMC) meeting and Fed Chairman Jerome Powell’s press conference for further guidance for the entire year.

The US S&P Global Composite PMI for July showed weaker-than-expected data. The figure fell to 52 from 53.2, versus 53.1 expected. Meanwhile, the S&P Global Manufacturing PMI improved to 49 from 46.3, and the Services PMI declined to 52.4 from 54.4. Apart from this, the downbeat US housing and inflation data reported last week underpin the US Dollar and hint that the Fed could be close to the end of their rate-hike cycles. It’s worth noting that gold is sensitive to rising interest rates as they raise the opportunity cost of holding non-yielding bullion.

The week’s highlight will be the Federal Reserve’s (Fed) interest rate decision on Wednesday. The Fed is widely anticipated to raise interest rates by a quarter percentage point to 5.25–5.50%. However, market participants speculate that the Fed is about to end its tightening monetary policy and will take cues from Fed Chairman Jerome Powell’s press conference for further guidance. A hawkish stance from the Fed could trigger the US Dollar and act as a headwind for the gold price.

Additionally, China, the world’s largest gold consumer, signaled additional support for the real estate sector and a series of measures to stimulate domestic consumption amid a sluggish post-COVID recovery. This, in turn, supports further upside in the gold price.

Looking ahead, market players are now closely watching the Fed’s monetary policy meeting. This event could significantly impact the USD-denominated gold price. Also, US CB Consumer Confidence and Advance GDP QoQ will be due later this week. Investors will monitor this development and find opportunities around the gold price.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1960.64 at the time of writing. Pair opened at 1954.7 and is trading with a change of 0.3 % .

The pair is trading above its 20 Daily moving average @ 1938.72, above its 50 Daily moving average @ 1947.88 , below its 100 Daily moving average @ 1961.77 and above its 200 Daily moving average @ 1881.32

The previous day high was 1967.94 while the previous day low was 1953.53. The daily 38.2% Fib levels comes at 1959.03, expected to provide support. Similarly, the daily 61.8% fib level is at 1962.44, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1949.51, 1944.31, 1935.1
• Pivot resistance is noted at 1963.92, 1973.13, 1978.33

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