Since the beginning of the week, the price of Gold has remained in a narrow range at $1,780 per ounce.
Traders are waiting for a new catalyst from the FOMC's latest monetary policy decision, due tonight. Market analysts suggest waiting for a steady movement beyond the $1,800 mark before indicating the positioning of further growth. Conversely, a convincing break below the $1,760 per ounce support could shift sentiment back in favor of sellers.
Another factor in favor of the rise in the price of gold will be the fall in the yield of US Treasury securities. The 10-year bond yield and the U.S. Dollar Index are at their lowest levels in about two months. But a break above the $1,800 resistance could probably require the securities' yield to fall below the 1.55% value.
Dutch investment bank ABN recently published another survey on the commodity market. The forecast for precious metals remained unchanged compared to the previous reporting period. Analysts spoke about some important points that significantly affect the price of gold and especially noted the strengthening of real interest rates in the United States and the weakening of the US dollar. Overall, the outlook for gold remains negative as long as it is trading below $1,850 an ounce, according to the bank. The asset's recovery potential will soon run out, and prices will start to decline again. This forecast correlates with the bank's forecast for a further recovery in the dollar and an increase in real interest rates in the United States.
Gold Trading Signal
The forecast assumes the strengthening of Gold to the levels of 1785, 1790 and 1800 Dollars per ounce.