$1310 per troy ounce has become an impassable local obstacle for gold. Today, bulls have failed to get over it again, and after this the spot price of the metal broke the $1302 on the downward momentum. If the bears manage to break below $1295, it will be possible to think about a trend reversal. However, most likely this will not happen, traders are just a little bit nervous before the Fed’s announcement of the interest rate decision.
On Tuesday, the Federal Open Market Committee (FOMC) began its two-day meeting. And on Wednesday evening the Fed is to release its interest rate decision. The vast majority of analysts believe that the Federal Reserve will keep it at the current level.
The market, as always, will focus on the statement made by the FOMC and Chairman Jerome Powell. In December, the Central Bank predicted two interest rate hikes in 2019. However, many analysts think that this year they will increase the rate just once, after the summer. The tension in the market will remain until the market players hear the rhetoric of the Fed representatives.