Gold prices lost their footing on Thursday but that has not deterred the optimists to stick to bullish outlook. All eyes on the central banks with next week’s FOMC hurdle on the cards. Update: Gold has been consolidating its recent gains and trades around $1,965 as tension mounts ahead of the all important decision by the Federal Reserve. Willingness to allow inflation to overheat has already supported XAU/USD – and details about this would work could further push the precious metal higher. Preview: How the Fed could drown markets while trying not to rock the boat Gold has been giving back territory as the US dollar bounces back to life with the DXY advancing some 0.8% since the 92.70 lows. At the time of writing, XAU/USD is trading at 1946 between $1,941 and $1,966 range ahead of the close. Overnight, markets continued to trend down as the European Central Bank meeting provided little to stimulate equity markets. The Dow Jones Industrial Average lost 405.89 points, or 1.45%, to 27,534.58, the S&P 500 dropped 59.77 points, or 1.76%, to 3,339.19 and the Nasdaq Composite fell 221.97 points, or 1.99%, to 10,919.59. However, what would normally help gold bulls out has not come to fruition into the close on Thursday and prices fell 1.26% on the day. But that has not perturbed the optimists. ”The set-up in gold is ripe for a breakout higher,” analysts at TD Securities argue. In a series of comments, the analysts believe that there is plenty of supportive nature for precious metals as follows: We reiterate that the market has revealed few weak longs remaining in gold in recent trading sessions, creating an asymmetric balance of risks. In this context, today’s announcement from the ECB removes one of two primary hurdles weighing on gold bugs. After all, our macro strategists argue the central bank’s inflation forecast revision shows no real concern with the exchange rate appreciation pass-through. The second hurdle will be next week’s FOMC, in which we expect officials to send a dovish signal through the wording on QE, the extension of the dot plot through 2023, and the chairman’s press conference. Over time, this will open up the door to an extension in the average maturity of Treasury purchases, which should further support precious metals. Gold levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD to resume the uptrend on a break above 1.1930 – Credit Suisse FX Street 2 years Gold prices lost their footing on Thursday but that has not deterred the optimists to stick to bullish outlook. All eyes on the central banks with next week's FOMC hurdle on the cards. Update: Gold has been consolidating its recent gains and trades around $1,965 as tension mounts ahead of the all important decision by the Federal Reserve. Willingness to allow inflation to overheat has already supported XAU/USD – and details about this would work could further push the precious metal higher. Preview: How the Fed could drown markets while trying not to rock the boat Gold has been giving back… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.