Gold Update – Asian Session Ahead of FOMCGold Update – Asian Session Ahead of FOMC
After yesterday’s sharp decline below 3312, gold found strong support and is now consolidating sideways, building liquidity for the next move. From the current outlook, a short-term rebound is likely before the broader downtrend continues.
Looking at structure, the descending channel remains intact with price respecting the trendline, and yesterday’s break out of the triangle formation reinforced the bearish bias.
From an Elliott Wave perspective, the market may now be forming wave 4. If this rebound carries price back towards the 3325–3330 zone, it will retest a strong resistance area that has repeatedly capped price before. Should that happen, wave 5 could begin — and by theory, it is often the strongest leg.
Fibonacci projections highlight the next support near 3295. If tonight’s FOMC meeting delivers a hawkish outcome in favour of the US dollar, gold could even extend lower towards 3280.
For short-term trading, buyers may consider positions near 3316 with a tight stop just below the recent low, aiming to capture the corrective move of wave 4. On the flip side, if price reacts around 3325–3330, this may provide an opportunity to sell into the expected wave 5, with potential targets extending 40–50 dollars lower if momentum strengthens.
A sustainable trend always alternates between retracements and impulses. Patience in waiting for the right wave often leads to more effective trades than rushing to pick tops or bottoms.
Do you think the FOMC this month will announce a positive interest rate outlook? Share your thoughts in the comments.
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