XAU/USD was trading in a tight range. Wednesday is a very important day for the precious metals as all investors are waiting for the results of FOMC Meeting. There are several scenarios and we are going to describe two of them. First, FOMC leaves the rates unchanged and give no signals about further rates hikes during the current year. In this case Gold and Silver may grow. Second, rates remain unchanged but FOMC gives signals about the probability of rates hike during December’s Meeting. IN this case USD may gain some support in advance. This scenario is negative for Gold and Silver.
There is the uptrend on the Weekly chart as the price is above the MA55. We have seen some decline according to the technical analysis last week. We expect the price to bounce off the red trend line this week.
There is no trend on the Hourly chart as the MA-channel is horizontal and the price is close to the MA55. We advise to open trades after FOMC Meeting.
Silver price stopped its growth yesterday and was trading within a range. Today we expect this dynamics to continue as investors wait for the results of FOMC Meeting.
There is the uptrend on the Weekly chart as the price is above the MA55. We expect XAG/USD to be trading within a range.
There is the uptrend on the Hourly chart as the MA-channel goes upwards and the price is above the MA55. WE advise to avoid trading before the results of FOMC Meeting.