Gold Prices (XAU/USD) Stutter ahead of FOMC All Eyes on the Fed

Gold Prices (XAU/USD) Stutter ahead of FOMC All Eyes on the Fed

Gold prices have shrugged off a higher than anticipated UK CPI print as investors shift their focus to the FOMC rate decision later today. Visit the DailyFX Educational Center to discover how CPI data affects currency pairs As a hedge against inflation, a shift in risk sentiment and a more hawkish rhetoric from Fed chair Jerome Powell have continued to weigh on Bullion as investors price in the probability of a sooner than anticipated rate hike in an effort to control inflation. Although the Fed, BoE (Bank of England) and the ECB (European Central Bank) all remain under pressure to tackle the effects of inflation, the rapid spread of the Omnicron variant has once again forced governments to consider implementing tighter restrictions which may further hinder the pace of economic recovery and in turn, the pace of tapering. If central banks maintain a more accommodative stance, Gold prices have the ability to move higher, at least temporarily. At the time of writing, Gold prices are trading within a confluent zone, between key Fibonacci levels of both the 2020 and 2021 move. After falling below channel support late last month, US Dollar strength and expectations of rate hikes have allowed bears