Gold Price Forecast: Flatlining ahead of FOMC meeting

• Gold price finds its feet after losing almost $60 in 48 hours.

• The next directional move depends heavily on the outcome of the FOMC.

• Gold Futures Open Interest is signaling a possible rebound to $2,000 on the cards, says analyst.

• Longer-term uptrend remains intact if bruised, according to technical analysis.

Gold price finds a floor at around $1,940 in the calm before the FOMC storm on Wednesday. The recent banking crisis appears to have eased temporarily with the completion of the takeover of Credit Suisse by UBS. Markets may have drawn comfort from the news UBS may buy back the AT1 bonds that were sold as a sacrificial lamb to sweeten the takeover.

Despite Gold price’s sell-off over the last two days, the precious metal still remains very much in an uptrend on higher timeframes. Now, much depends on the outcome of the US Federal Reserve’s meeting as to whether the uptrend resumes or bears push Gold price a step lower.