Spot gold prices are trading just above unchanged levels Tuesday with prices pinned in a narrow trading range so far. Prices have so far held around $1626 to the downside before meeting some resistance on the session high of $1630.59. Price action has been subdued ahead of the Federal Open Market Committee (FOMC) meeting, due to commence later today, with many market participants on the sidelines. The FOMC are due to release a statement at the conclusion of its 2 day meeting on Wednesday, with the policy decision likely to influence the price of gold over the forthcoming sessions. Fund managers continue to buy the dips in the precious metal amid growing expectations that the Federal Reserve may initiate some additional QE or an extension of Operation Twist, which is due to expire at the end of June. Spot gold prices are expected to remain in a narrow trading range ahead of the Fed meeting, with some moderate support seen around $1620/22. If the resistance barrier seen around $1629/31 is cleared then prices may start heading towards the $1658 area. Spot gold is currently trading $1629.10, up $1.
EasyForexNews Research Team