The Gold is trading in the red even if the USDX is trading in the red as well. Price changed little today, maybe because the traders are waiting for the FOMC before will make a final decision. The yellow metal is into a corrective phase on the short term, this ia natural after the impressive rally.

Remains to see how long the retreat will be because the price is trading near an important support zone. Right now is better to stay away from Gold because we don’t have any trading opportunity and because the FOMC will bring a huge volatility on the currency markets. The Federal Reserve will shake the markets tomorrow, the FOMC Press Conference is the week’s main event.

Gold failed to drop below the $1304 per ounce as the AUD/USD and the NZD/USD have edged higher aggressively. The Kiwi increased sharply even if the New Zeland Westpac Consumer Sentiment decreased from 113.4 to 112.4 points in the Q2, but the GDX Price Index increased by 0.9%, beating the 0.3% in the former reading period.

On the other hand, the Aussie rallied after the release of the Monetary Policy Meeting Minutes, while the HPI increased by 1.9%, beating the 1.2% estimate.

Gold has squeezed a little as the USD wasn’t inspired by the mixed United States data. The price could come to retest the warning line (WL1) tomorrow. Is trading right above the $1303 per ounce and above the 38.2% retracement level, will be rejected by this support area if the FOMC will disappoint.

However, the near term major downside obstacles will be at the warning line (WL1) and at the long term 38.2% retracement level. Actually, it could be attracted by the confluence area formed between the mentioned support levels. Technically, it should approach and reach the WL1   after the false breakout above the lower median line (LML) and most important after the failure to close on the LML.

We’ll have a buying opportunity after a breakout above the WL1 or after a retest of the warning line (WL1) of the ascending pitchfork.