Gold prices have been range-bound over the past three sessions. The precious metal has been trading within the range of $1721.95 and $1741.42. On Wednesday, it was trading higher by 0.23% at 1735.71. On the one hand, the existing inflation concerns are bullish for the precious metal.
Notably, inflation expectations are one of the aspects that gold’s bulls are focusing on regarding today’s Fed decision. Depending on Powell’s tone, the metal’s role as a hedge against inflation is likely to push its prices higher.
However, the stable US dollar and treasury yields are weighing on gold prices. The $1.9 trillion stimulus package, coupled with the progress in the vaccination rollout, has heightened optimism of the US economic recovery. Besides, the rise in treasury yields is bearish for gold prices as some investors view it as a non-yielding commodity.
Gold prices technical outlook
On a 4-hour chart, gold prices are trading slightly above the 20 and 50-day exponential moving averages. At the current resistance level of about $1737, the prices have formed an ascending triangle that spans from the beginning of last week. If the prices manage to move past the triangle, an upward trend is likely. In that case, the bulls will be targeting the $1815.65 level reached in mid-February. However, if the prices move below the diagonal line, the bears will test the $1700 and $1676 levels.
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Gold prices Daily Chart
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