Gold Under Pressure; FOMC Decision in Focus

Global gold prices saw a correction during Tuesday’s (Oct 27) trading session, following a recovery in the previous session. In early Asian trading, spot gold weakened by 0.1% to around US$4,010.94 per troy ounce.

This decline reflects growing investor caution ahead of the Federal Reserve’s (The Fed) monetary policy decision, scheduled for October 27–28. Although oil prices have begun to correct alleviating some inflationary concerns the prospect of a U.S. interest rate hike by the end of the year continues to weigh on the precious metals market. Such conditions limit the appeal of gold, an asset that does not generate a yield.

Gold price at the time of this analysis: $4,002

- Buy if the price moves to $3,997

- Sell if the price moves to $4,010

Resistance 2: $4,025

Resistance 1: $4,015

Support 1: $3,993

Support 2: $3,985

Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.