On analysis of the movements of the gold in different time frames, I find that the gold bulls do not look aggressive at this point, as the bears have been in command for the last few trading sessions.
After remaining in command since Feb. 12, 2024, exhaustion is likely to prevail among the gold bulls as the Fed could likely hold short-term interest rates in today’s meeting, which is just a few hours away in today’s trading session.
In a weekly chart, gold futures are still trading above the 9-day moving average after a breakout from the strong buying support level at $2025 during the second week of Feb. 2024.
Despite the favorable geo-political situation, gold futures could see a selling spree.
In the daily chart, gold futures look ready to take a step up before the advent of stepping down, as the bulls could hardly breathe above the immediate resistance at $2470.
The gold bears look ready to open their shorts between $2074 and $2492, with a stop-loss point at $2525.
In a 1-hour chart, gold futures could witness a selling spree if things go according to general expectations for holding short-term interest rates.
Undoubtedly, gold futures could see a breakdown after the final words from the Fed tonight.
I conclude that a downward move by the 9 DMA below the 18 DMA could be a short-term signal for the traders to remain short for a short-term target at $2442; a breakdown below this could push the gold futures toward the next significant support at 200 Days Moving Average which is currently at $2410.