‘We do not think much will change throughout much of Wednesday ahead of the Fed rate decision and policy statement.’ – Edward Meri, INTL FCStone (based on Reuters)
During the early hours of Wednesday’s trading session the yellow metal’s price fluctuated near the 1,200 mark. This tendency was established already on Tuesday morning, as the markets are expecting the Federal Reserve to announce its rate decision. The markets are expecting the Fed to hike the rate by 0.25%, and that would cause the US Dollar to strengthen, which would force the metal’s price to fall. From a technical analysis perspective the commodity price is already positioned to fall down to the 1,186.87 level, where the closest support is located at.
Traders have not changed their opinion at all, as 52% of open positions remain long, and 69% of trader set up orders are set to buy the metal.