This morning, gold has been in decline, trading at $1,767.70/oz.
Gold prices will be jittery over the next few days since today the Fed wraps up its two-day meeting at which a decision will be made on whether to step up the pace of QE tapering, while issuing guidance on rate hikes in 2022.
The more rate hikes, the more noticeably the dollar will strengthen, which means losses for gold, given their inverse relationship. The baseline scenario calls for two rate hikes next year, for a total of 50 bps, although other options could be on the table.
If the Fed confirms two rate hikes for 2022, the dollar could appreciate considerably, whereas gold would move on a downward trajectory.
The support for gold is currently at $1,762, while resistance is at $1,792.