Gold Price Slips as 87% Rate Hike Odds Weigh Heavy

The gold price slipped early on Monday as expectations of a Federal Reserve rate hike hit 87%. The main trend for gold is down according to the swing chart, and a trade through $4,282.62 would signal a continuation of this downtrend.

Despite being below its 200-day moving average resistance at $4,538.39, gold is getting close to its 50-day moving average support at $4,269.07. The three-month range for gold is between $3,942.10 and $4,697.11, with a retracement zone of $4,319.60 to $4,230.51.

On Friday, the market tested this zone with a low at $4,292.11 before rebounding. The next major test for gold is the Fed decision next Wednesday, where traders will be listening for whether Chair Kevin Warsh frames the rate hike as a standalone adjustment or signals additional increases.