Deep pocket traders waiting for FED meeting

Fundamental News and Triggers

• Deep pocket traders are avoiding large directional positions in bullion market as they are waiting for FED monetary policy next week.

• To better evaluate the lag effects of previous actions, FED policymakers have indicated they may hold rates steady this month. However, this should not be interpreted as a protracted pause, as the hiking cycle may resume in July given persistent price pressures in the nation. This is acting as negative pressure on prices.

Technical Triggers

• Despite the recent weakness, gold prices are still favoring the upside, maintaining a pattern of higher highs and higher lows, and trading within a medium-term ascending channel. Next critical resistance is $2000 and $2025, to continue uptrend.

• Silver prices retraced 38.2% to $23 of its rally from $18 to $26.4 last week. Prices have rebounded to head higher towards Fibonacci resistance level of $24.4.

Support and Resistance

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