Gold cautious below $1,320 ahead of BoJ, FOMC

The ounce troy of the precious metal is trading in a tight range today, down smalls and consolidating in the $1,320/15 band for the time being.

Gold looks to BoJ, FOMC

After dropping to the $1,300 neighbourhood on Friday, the yellow metal has managed to advance to levels just above $1,320 during Monday’s session, although the bullish attempt succumbed soon afterwards.

In the meantime, today’s price action remains subdued against the backdrop of swelling cautiousness in light of the BoJ and FOMC meetings.

Market consensus expects the BoJ to show some more determination in its efforts to tackle domestic deflation via tweaks in its current QQE programme or by adventuring deeper into negative rates.

On the FOMC side, the Committee is largely expected to remain ‘on hold’, although the subsequent press conference by Chief J.Yellen could prove to be crucial for a potential rate hike in the next months, particularly in December.

Gold key levels

As of writing Gold is losing 0.06% at $1,317.05 and a breach of $1,307.25 (100-day sma) would open the door to $1,311.90 (low Swp.16) and finally $1,301.50 (low Sep.1). On the other hand, the initial hurdle is located at $1,332.37 (55-day sma) followed by $1,350.50 (high Sep.7) and then $1,366.00 (high Aug.2).