Gold drifts sideways but awaits FOMC release



Gold has drifted sideways for 2024 (blue arrow). There was a brief impulse up during December 2023 as markets priced in the first rate cut for 2024 in March. This was relatively short-lived, with the first rate cut being pushed back to June.

As such, it is not a surprise that gold's weekly RSI drifted back to the neutral level of 50 over this time as price volatility dissipated. We are watching to see if there is a breakout by the RSI at 1, which would indicate bullishness retuning to the precious metal. The release of the FOMC minutes today at 7:00 pm GMT might prove to be a catalyst here.

Gold is above its black 200-day simple moving average, which does seem to suggest a bullishness to the yellow metal. However, to truly reflect positivity, XAUUSD's EMAs will need to form into bullish mode, with the green 5-week EMA crossing above the orange 10-week EMA, and then develop angle and separation to the upside.

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Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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