Gold Flat as Stronger Dollar Caps Gains Before FOMC.
Gold price remains flat as trade optimism and a stronger U.S. Dollar limit bullish momentum
FUNDAMENTAL OVERVIEW:
Gold price (XAU/USD) stalls its intraday recovery from over a one-week low, trading just above $3,335 in early European hours on Monday, little changed on the day. A stronger U.S. Dollar, rising for the third straight session, weighs on the metal, while trade optimism also limits its upside.
However, caution ahead of upcoming U.S.–China trade talks lends some support to gold. Additionally, traders are awaiting clearer signals on the Federal Reserve’s rate-cut outlook, which is keeping USD bulls in check. This uncertainty is helping to contain downside pressure on XAU/USD ahead of Wednesday’s key FOMC decision, which could set the tone for gold’s next move.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within a up channel.
Gold is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Selling Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 3362.00
Immediate support level: 3310.50
HOW TO TRADE XAU/USD
After a strong and sustained rally, gold has paused and entered a corrective phase as its upward momentum fades. The metal faced repeated rejections at higher levels, leading to a sharp drop that breached key support. It’s now showing weakening momentum and trading near immediate support—if this level breaks, a further decline toward the day’s low is likely.