Gold on Tuesday has been consolidating around $1,765/oz and could now move into the range of $1,750-1,775. The precious metal will have limited opportunities until the fundamental backdrop smooths out and the market gets an update from the Fed. The best option is for gold to trade sideways within a broad range.
A strong dollar, which enjoys demand both as a haven asset and as the market darling ahead of the Fed meeting, is preventing gold prices from recovering from last week's rout. It will take some time for the market to shake off the stress from September 16.
Gold will need at least another day to move in a new range ahead of news from the Fed. Wednesday night will see heightened market volatility and it makes sense for players to steer clear of gold for the time being.