The Fed's interest rate decision should be important for the outlook on monetary policy, helping to assess potential risks in the market and possibly serving as a hedge.
XAU/USD short-term forecast
The previous week's short-term upside volatility pushed the market price of gold towards 2721.2700. However, a rejection of further upside price discovery brought the price of gold below 2666.000 on Friday.
If rejection of upside price momentum occurs, further price discovery could be to price levels 2600.00 and 2540.00.
XAU/USD daily charts review
On the daily candlestick chart, no significant price movement was observed in the previous week. The 30-day RSI indicator suggests that slow upward price pressure towards 2723.6500 may occur if the majority of sellers are not active. Unexpected selling pressure could test price levels of 2605.9500 and 2562.7500.Daily Candle Chart
Traders take profits
At the moment, there is short trading bias in gold. Trader sentiment suggests that possible downside momentum should be taken in consideration.
Meanwhile, in the 1000 point range around the latest price, there are 80% buyers and 20% sellers.