Gold Price Tests Wedge Resistance Ahead of Fed Decision

Gold's price is nearing a crucial technical area as traders prepare for the Federal Reserve decision. Analysts are watching closely, and one analyst sees gold in a marked consolidation zone after its recent price pushback from a breakdown.

Ian Cooper notes that gold has been trading around the $4,300 figure, which has provided both support and resistance. This area is crucial as it could determine whether gold breaks out or remains in its current range.

Cooper's chart shows that the Relative Strength Index (RSI) is near the midrange, indicating a lack of dominance by either buyers or sellers. This suggests that the Fed decision and its remarks will be key catalysts for a breakout.

James Stanley's chart highlights a falling wedge pattern in gold's price movement since late August. The lower half of this structure has been defended at the $4250-$4300 level, but a clean move above it would put an end to the downtrend.