Gold Price Rebounds from 3-Week Low Ahead of FOMC, NFP

• Gold price recovers from 3-week lows amid safe-haven demand.
• The US’s pressure on Russia to resolve the Ukraine conflicts keeps the risk elevated.
• The EU-US trade deal gives a boost to the US dollar, keeping gold’s upside capped.

The gold price bounced off the 3-week lows near $3,300 on Tuesday, during the European session. The recovery move stemmed from the reassessment of risk sentiment by the traders, anticipating the Fed’s policy decision this week.

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A mild pullback in the US dollar from the multi-week top also helped the buyers ease some pressure. The respite came after four consecutive sessions of decline. The safe-haven demand for gold underpins the recent upside as markets continue to digest the trade development between the US and the EU.

On the other hand, the geopolitical risk remains elevated as President Trump has set a deadline for Russia regarding the progress in the Ukraine conflict. Moreover, the US-China trade talks also pose a perplexing scenario for the market participants.

Despite the gold’s rebound, the upside remains limited as the US dollar remains resilient and the Federal Reserve is largely expected to hold the rates steady for longer. The Fed is anticipated to keep rates unchanged in its meeting on Wednesday. However, the traders will be more interested in Fed Chair Powell’s statement, which will reveal the monetary policy.

Key Events for Gold to Watch

Today, we have only JOLTs Job Opening data from the US, which is expected to cool modestly. As a result, gold may find further support. Meanwhile, market participants are more eager to watch for US GDP, NFP, and Core PCE data, as these collectively shape the economic health, helping the Fed to find the policy path for the future.

Gold Price Technical Analysis: Weak bullish attempt

The 4-hour chart shows gold’s strong bearish momentum as the recent candles reveal one strong bearish engulfing bar, piercing the support level. The recent small upside candles are corrective, retesting the broken level. The RSI value has turned up from the oversold levels, residing near 40.0, which shows the gold is still not out of the woods.

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Meanwhile, the key moving averages have already formed bearish crossovers and lie well above the price. It indicates downside potential, but the $3,300 level is a major support for the buyers. On breaking the level, the price may drift to another support level at $3,284 ahead of $3,248. On the upside, $3,350 remains a strong resistance.

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