Gold price action is trapped in between the key hourly moving averages
The recent downside move met support close to $1,693 and that level was tested once again in overnight trading, before price rebounded towards the 200-hour MA (blue line).
Since then, price action has been trading narrowly just above $1,700 and hugging levels in between the key hourly moving averages. That suggest the near-term bias in gold is now more neutral as buyers and sellers do battle to start the trading day.
Looking ahead today, the Fed policy meeting will be the key spot to watch in driving a possible break in gold on either side of the 100-hour MA (red line) or 200-hour MA.
No major announcements are expected in terms of policy decision but the language and any hints of what to expect next from the central bank will be key.
A more dovish tone will give gold added reason to try and attempt a break higher; vice versa.
For now though, price action remains trapped as seen above until we get better clarity on what the market chooses to focus on in the coming sessions.