XAUUSD falters as market waits for Fed’s meeting.

“Market is currently expecting a higher chance for 25 basis point rate hike, a shift in expectation due to banking crisis.”

US dollar pared some of its losses on Wednesday while market participants waits for the conclusion of Federal Reserve’s policy meeting. Currently, market is expecting a 85% chance for a 25 basis point rate hike, a lower expectation as compared to past few weeks ago whom are expecting a higher chance for a 50 basis point rate hike. The lower expectation was spurred due to banking crisis in the US which prompts the Fed to introduce measures and bail out the bank from falling.

Technical Analysis

XAUUSD, Daily: Gold price tumbles sharply after testing near the resistance of 1998.80. MACD which portrays significant reduction in bullish momentum suggests the bullion to extend its losses in the near term.

Resistance level: 1950.10, 1998.80

Support level: 1891.35, 1848.85

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