So far, the follow-through to Friday’s corrective bounce to $1288 has been anything but bullish. The prices headed down again below the $1280 level during today's early session as the range remained capped for the last couple of days. The next move will be determined by today's FOMC conference as the Fed talks rate cuts. Rate cuts, however, seem unlikely, courtesy of sustained labor market strength and record highs in stocks.
Gold prices retreated from the highs of $1286.10 printed yesterday to head head below the $1280 mark this morning as the tight range remains intact for this week. The momentum is pointing towards some weakness as the price is currently hovering around the $1279 level. Our focus will be mainly on the downside especially the $1274 support level, however, the breakout remains not clear for either direction.
Support: 1282.19/ 1280.11
Resistance: 1285.35/ 1288.35