Gold posted a lackluster rally last weekend before continuing its decline and market participants are now preparing to await the US Federal Reserve's (Fed) monetary policy decision on May 1.
Last week, data from the United States showed GDP missed expectations and the Fed's preferred gauge of inflation, the Core Personal Consumption Expenditure (PCE) Price Index, remained flat for two consecutive months at 2.8%.
Meanwhile, the price of gold is now at $2,330.33 which is down by 0.23% today since it opened at the beginning of the trading session this morning.
The decline in the yellow metal occurred due to relatively high market risk and had an impact on price movements. Lower US Treasury yields and the US dollar also weakened.
Previously, the Fed was expected to keep interest rates unchanged following Jerome Powell's statement in which he said the current monetary policy stance was justified due to the lack of progress in reducing inflation.
In addition, the market will also pay attention to the release of US Nonfarm Payrolls (NFP) figures that will be published this Friday.
From a technical point of view, the price of gold is still in a positive price area above $2,300 although it has shown a slight decline over the past few days.
The market is now setting its gains to the April 26 high of $2,352 so they can remain hopeful of challenging higher positions. The next price resistance is placed at the level of $2,400 followed by the level of $2,417 and the current ATH which is $2,431.
If otherwise, the price of gold may be limited to the lowest level of April 23 around $2,229 followed by the highest level of last March 21 which is $2,222.
