- Gold is currently trading at $1,306 and in a range of a dollar in early Asia.
- Traders await the FOMC outcome, expected to weigh on the greenback.
Gold prices traded between $1,306.48oz and $1,310.91oz overnight, on the front foot for the best part of the North American session, closing above the $1,300 psychological level.
Futures also ended higher and above $1,300oz for a third straight session as the greenback remains subdued ahead of the FOMC. Markets expect that the Fed will reinforce a standstill in monetary policy into the second half of 2019.
“While gold prices remained well bid ahead of this week’s FOMC meeting, palladium has stolen the spotlight as the catalyst metal once again prints a new all-time high. In addition to the growing supply angst, large automakers have announced price cuts to their vehicles sold in China after the nation announced that it will reduce the VAT tax by 3 points “” spurring hopes that car sales in the Middle Kingdom, which have been horrible of late, could see a path towards recovery,” analysts at TD Securities explained.
Bulls can target 1315 as the next key target that meets the trend-line prior support of the rising channel – 1313 is the 50% Fibo target which is yet to be conquered in this recent bout of demand. 1332 guards the 2019 highs as being the 19th Feb high of 1345.19. While 1280 is a keen target, 1275 remains the line in the sand to the downside, and a break below it will put the attention back to the towards to 1250, a key confluence area made up of Fibos and prior support and resistance.