Gold Price Forecast: XAU/USD extends recovery toward $1880.

XAU/USD rises after finding support at the $1850 area.FOMC meeting kicks off, US yields retreat.US dollar drops modestly across the board, DXY down by 0.25%.

Gold printed a fresh daily high during the American session at $1878.20 on Tuesday, boosted by a recovery in Treasuries and a weaker US dollar. The metal is holding onto gains, recovering from monthly lows.

Earlier, XAU/USD bottomed at $1850, the lowest level since mid-February and then turned to the upside. The recovery gained support above $1860 and boosted gold further.On the day before the FOMC decision, US yields are pulling back from multi-year highs. The US 10-year stands at 2.92% after hitting on Monday 3% for the first time since 2018. The Fed is expected to announce an increase in interest rates by a half percentage point that would be the first one by such magnitude in more than 20 years. Market participants also expect the central bank to start shrinking its balance sheet by $95 billion per month from June.

Next resistance at $1880

If XAU/USD keeps rising, it will face resistance at the $1880 level and then at $1890. Even if it hits $1900, the outlook will remain negative. A recovery back above $1915 would weaken the bearish bias.

On the flip side, a slide back under $1860 would expose the $1850 critical area, which is the recent low and also a medium-term level. Below at $1833 awaits the 200-day Simple Moving Average.

EUR/USD trims early gains and approaches 1.0500.EUR/USD retreated from a daily high of 1.0577 and approaches the 1.0500 threshold. US Factory Orders rose at a stronger pace than expected in March, helping the dollar despite a generally better market mood. Attention shifts to Fed monetary policy decision.

EUR/USD News 

GBP/USD pulls away from session tops, pierces 1.2500.GBP/USD has lost its recovery momentum in the American session and erased most of its daily gains. Upbeat US data and caution ahead of central banks’ announcements limit intraday ranges across the board.

GBP/USD News 

Gold: Fear-related selling pauses ahead of Fed’s decision.Spot gold trades with modest gains at around $1,871.40 a troy ounce after bottoming at $1,850.34 during Asian trading hours. Fears paused on Tuesday as investors changed their focus from the usual risk factors to the upcoming US Federal Reserve monetary policy decision. 

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