Gold price (XAU/USD) is portraying a non-direction performance on Monday as investors await the interest-rate decision by the Federal Reserve (Fed) for further guidance. The precious metal is expected to continue its lackluster performance as a small interest-rate hike from the Fed is widely expected despite softening inflation and loosening labor market conditions.
There is little doubt among investors that the Fed will increase interest rates to the 5.25-5.50% range as the core Consumer Price Index (CPI) is still stubbornly high partly due to the resilience in consumer spending. A catalyst to which investors are keeping an eye is the interest-rate guidance from the Fed.
Fed officials and investors have divergent views about where interest rates will peak for the current year as the former signaled that two more interest-rate hikes are appropriate while market participants are expecting that the upcoming interest-rate increase will be the last one this year.
Technical Analysis: Gold price eyes further correction to 20-EMA
Gold price juggles in a narrow range after a three-day correction from the immediate high of $1,984.00. A mean-reversion is expected in the precious metal toward the 20-period Exponential Moving Average (EMA) around $1,950.00. The yellow metal is under pressure due to a decent recovery in the US Dollar Index.
