Gold prices gave up the intraday gains following the FOMC meeting. The precious metal traded higher on the day but fell after the Fed left the interest rates unchanged. The central bank also maintained a neutral tone in its statement. This was in contrast to the general expectations that the Fed could start preparing the markets for a rate cut. Gold was down 0.5% on the day.
XAUUSD Likely to Trade Sideways
XAUUSD continues to trade within the range that is established. Price briefly tested the resistance area of 1285 yesterday before slipping back to the support formed at 1273. A daily close below 1273 support is required to confirm further downside in the precious metal. For the moment, the upside bias seems to be diminishing. A close below 1273 will potentially see the bearish trend resuming in gold.
