Gold prices appear to be breaking out of a near-term range, with the precious metal at risk of exhibiting a more bullish behavior as it starts to carve a series of higher highs & lows.
Bullion may stay bid ahead of the Federal Open Market Committee’s (FOMC) last 2017-meeting on December 13 as the precious metal clears the monthly opening range following the failed attempts to test the October-low ($1261).
Even though Chair Janet Yellen and Co. are widely anticipated to deliver a 25bp rate-hike ahead of 2018, the recent advance in the U.S. dollar appears to be losing momentum as the upcoming rotation within the FOMCdampens bets for higher borrowing costs. As a result, market participants may pay increased attention to the fresh forecasts coming out of the central bank as the Fed appears to be on course to implement three rate-hikes per year.
Keep in mind, the FOMC is already expected to keep the interest rate on hold in March 2018 as Chair Yellen’s tenure expires in February, and the broader shift in market behavior may continue to take shape over the coming months as the Fed runs the risk of reaching the end of its hiking-cycle ahead of schedule.
XAU/USD Daily Chart
