Gold Consolidates, Investor Focus Shifts to Fed Decision
Gold prices moved steadily on Monday (September 15th) following a meeting between the United States and China in Madrid that discussed trade, national security, and the status of the TikTok app. Investors are now awaiting further developments in the negotiations and the Federal Reserve's (Fed) monetary policy decision this week.
Fundamentally, the outcome of the US-China meeting has the potential to influence gold's direction. If negotiations progress positively and trade tensions ease, global risk appetite could increase, suppressing demand for gold as a hedge. However, if negotiations stall or new tariff threats emerge, this could drive capital inflows into gold.
Furthermore, the market's primary focus remains on the FOMC meeting. The Fed is almost certain to cut interest rates by 25 basis points, with some analysts even opening up the possibility of a more aggressive cut of 50 basis points. Expectations of monetary policy easing are supporting gold prices, although profit-taking has pushed prices down from last week's high.
Technically, gold is currently trading around $3,640 per ounce. The nearest support is at $3,620, while strong resistance is in the $3,650–$3,670 range. As long as the price remains above $3,620, the short-term trend remains positive, with the possibility of a retest towards the resistance area. However, if it breaks below $3,600, a deeper correction towards $3,570 could occur.
Given these conditions, the outlook for gold today tends to be neutral-bullish, supported by expectations of dovish policy from the Fed, although the potential for a technical correction still requires vigilance.
Source: Newsmaker.id
