Gold prices recovered from Monday’s losses as price got a boost after Mario Draghi’s comments. The precious metal also maintained gains ahead of the conclusion of the two-day FOMC meeting today. While no rate cuts are expected, we do expect the Fed to convey to the markets the timing of its potential rate cut. Gold prices maintained strong gains, rising for three consecutive weeks so far.
XAUUSD Forms the Ascending Wedge Pattern
Gold prices have consolidated firmly above the 1320 handle. But in the process, price action has formed an ascending wedge pattern. This could potentially see price settling back to the 1320 level to establish support more firmly. The bias shifts only if gold prices can breakout convincingly above 1354 level.