FX.co ★ Technical review for XAU/USD: spot gold may rally

Gold is consolidating at 1856.00-1872.35 ahead of the release of the Fed's decision on interest rates. But since the market has already taken into account a potential rate hike of 0.50% to 1.00%, the central bank's future plans will play an important role. If Powell makes it clear that further rate increases may not be so aggressive, then demand for dollar will decrease, while gold will gradually rally.

Technical picture: The quote is below the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. Meanwhile, the relative strength index (RSI) is below 50% and indicates a decline, while the stochastic indicator is at 50%

Possible dynamics: A rise above 1872.35 could lead to a rally towards 1917.50.