Gold seems to be traded within tight range before next FED meeting.

 #OPINIONLEADER#  #XAU/USD# 

 

 

The XAU continues to bounce back from a fresh monthly low (1783) as it snaps the series of lower highs and lows from the start of the week, but the failed attempt to clear the previous high (1834) undermines the recent recovery in bullion as it slips back below the 200SMA (1809).

The broader outlook for it remains tilted to the downside as 1809 continues to reflect a negative slope, and the precious metal may face headwinds ahead of the next FED interest rate decision on September 22 as they prepare to scale back monetary support.

Speculation for a further shift in Fed policy may continue to drag on the XAU as they forecast two rate hikes for 2023, and it remains to be seen if Fed officials will implement material changes.
T
he fresh forecasts from Fed officials may drag it if they show a greater willingness to normalize monetary policy sooner rather than later, but more of the same from the central bank may heighten the appeal of gold as the FOMC carries out an outcome-based approach for monetary policy.

So XAU may consolidate ahead of the FOMC rate decision on tap for later this month amid the failed attempt to clear the July high, and the rebound from the August low may turn out to be a correction in the broader trend rather than a change in market behavior as the precious metal struggles to hold above the 1809.