GOLD is trading around 2387, if we get a closing of a candle below 2384 we can expect price to again go bearish and towards 2360. We will wait for retracement towards 2399-2390 again to sell.
Fundamentals:
Gold moved higher early on Tuesday as treasury yields eased ahead of the start of the two-day meeting of the Federal Reserve's policy committee that is expected to end with interest rates unchanged. Gold for December delivery was last seen up US$7.00 to US$2,432.50 per ounce.
The rise comes ahead of the Wednesday afternoon end of the Federal Open Market Committee meeting, which is expected to leave rates at a 23-year high but could confirm market expectations the central bank will begin cutting rates in September.
"Traders, following a succession of weaker US economic data prints, lifted expectations a US rate cutting cycle could begin in September as opposed to a prior focus on December as the starting point. Lower funding costs for holding a position in a non-interest paying metal, such as gold, will increase its attractiveness," Ole Hansen, head of commodity strategy at Saxo Bank, noted.
The dollar was higher early, with the ICE dollar index last seen up 0.19 points to 104.75.
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