Before the Fed meeting, gold started to move sideways

The spot gold market is showing a sideways movement after the decline due to the upcoming Fed meeting. Experts predict that gold will stay in the 1850-1950 band for a while. Indicators for gold prices turned red in the new week.

After a 3-day decline, gold started to follow a horizontal course as it waited for the Fed meeting. Spot gold is trading at the lowest level in the last 2 weeks after Russia's invasion of Ukraine and inflation peaked recently at $5 as the demand for safe assets increased. The drop in prices came as investors curtailed demand for the valuable commodity as the Fed prepared for its first rate hike since 2018. Due to Russia's isolation and the risks posed by the war, the US Federal Reserve's roadmap for the tightening cycle remains obscure. Gold took its place in a downward trend after the Russian-Ukrainian War, fueled by geopolitical risks and nearing its historical peak. Recently, gram gold prices, which have been guided by the ounce gold price, also fell to their lowest level in the week before the Fed meeting. In global markets, the Fed's interest rate decision attracted attention as the top priority agenda. Global markets are waiting for the US Federal Reserve's interest rate decision after its March meeting. While a mixed image was dominant in stocks, selling pressure was felt in commodity markets, especially gold prices and oil.