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Investors Still Waiting For FOMC Statement to Trade Gold

XAUUSD : Daily Chart

US dollar today is enjoying the glory of winning across the market but Gold still seems supported. To me it seems like Gold will only show the movement after the FOMC statement. 

On the daily chart, the pair seems consolidating within a descending triangle trend according to which the commodity should break down below the key support at 1291.74. All the major counterparts of US dollar declined after the upbeat US GDP report but Gold continued to trade above this key support level. But as Yellen mentioned in the previous meeting that if the economy continues to grow with the current pace Fed might think of increasing rates sooner than previously scheduled, and Gold doesn’t seems attractive in times of higher interest rates as it often cost more to hold money. So the investors are waiting for the further guidance on the future course of monetary policy.

On the chart there is also a falling wedge pattern which signals that the pair might also surge from the falling resistance trend line. Gold prices fluctuates a lot as it also depends on the political and economic conditions of the world other major economies.Lets see which trend dominates on Gold. For now expect a decline below the support at 1291.74.