Gold Weak Ahead of Key Meeting

Gold is seeing its worst days since the beginning of the year. The precious metal has found support in February levels around $1,160. Price is now $1,160.57 and it seems that the metal will now consolidate ahead of one of the most important events of the year - the last FOMC meeting for 2016 which will determine whether the interest rate will raise.

Market participants are sure that the FED Chair Janet Yellen will raise rates and they acted on this belief by supporting the US dollar in its latest rally against all competitors. This means that if we really get a raise, as everyone expects, the move down might not even happen as it did with the last interest rate raise - the US dollar did not do anything when the news came out.

The best thing you can do, as advised by all experts, is to not trade the news. This is important in such times as these where the uncertainty globally and locally in the US is the main environment for the market.

Analysts and experts predicted before the last raise that a Yes vote will put an end to all bullish hopes for Gold, but 2016 proved that the opposite actually happened.

Chart: XAU/USD D1