The precious metal was posting some modest gains after the Fed meeting. As the Fed outlook stays dovish, it is likely that gold will remain in favor. Besides the Fed’s outlook, trade uncertainty also is a major factor. Today’s ECB meeting continues to be the main key risk in the short term.
XAU/USD Could Rise Higher
XAU/USD is likely to test the upper resistance level of 1483. Given the fact that this level has already been tested, there is a scope for a breakout higher. However, in the near term, XAUUSD is more likely to trade range-bound. Price action has been trading flat within the 1483 and 1462 levels.
