Gold remains stuck on either side of $1,785/oz. with volatility sitting at a multi-month low as traders wait for the latest Federal Reserve rate decision and economic projections to be released on Wednesday. The precious metals trading range continues to narrow and this may lead to a sharp breakout, one way or another, depending on the meeting’s outcome. Last week’s US inflation report did little to move the dial despite inflation hitting a near 40-year high, while the yield on the interest-rate sensitive US 2-year has drifted lower post-release, easing downward pressure on the precious metal. The longer gold remains rangebound, the higher the probability of sharp breakout.
