Gold hits $3,680, eyes $3,700 as Fed decision looms
Gold (XAU/USD) price rallies on Monday, surpassing the previous record high of $3,674 and hitting $3,685, poised to challenge the $3,700 level in the near term, as traders brace for the Federal Reserve’s (Fed) monetary policy decision.
Bullion extends rally beyond previous record with traders pricing near-certain Fed rate cut at September meeting
On Wednesday, the US central bank is expected to reduce interest rates by 25 basis points, as depicted by the CME FedWatch Tool. Odds are at 95%, and for a 50 bps is slim at 5%.
Gold Price Forecast: Technical outlook
Gold price is poised to challenge the $3,700 in the near term, though it will depend on the outcome of the Fed’s decision. A dovish cut could push prices past the abovementioned figure and clear the path towards $3,750 and $3,800. Otherwise, a hawkish Fed could lead traders to book profits and push Gold prices lower.
Source: FXstreet
