Gold Prices Retreat as FOMC Meeting Looms

Gold prices faced selling pressure after failing to retest the $2000 level, with the US CPI release indicating that the Fed is unlikely to commit to rate cuts at the upcoming FOMC meeting. Geopolitical tensions and safe-haven appeal may continue to support gold, but the immediate direction will depend on the reaction of the US Dollar and US Yields to the meeting. A more dovish approach by the Fed could rejuvenate gold bulls and push prices back above $2000/oz, while a push back from the Fed could strengthen the US Dollar and push gold closer to the $1950/oz support area. Technical outlook suggests gold is resting in a key support area, while silver is at a key inflection point.