GBPUSD

Gold is searching for direction around the 3642.94 pivot level while awaiting the most critical event of the week, the FOMC meeting. If the Fed lowers interest rates as expected and expresses concerns about economic slowdown, the demand for Gold, a non-interest-bearing asset, could increase, pushing prices towards the resistance levels of 3655.57 and 3682.38. A weaker-than-expected reading in the Unemployment Claims and Philadelphia Fed Manufacturing Index, to be announced on Thursday, will also support this rise. In the opposite scenario, an unexpectedly hawkish stance from the Fed (for example, keeping interest rates unchanged) would strengthen the Dollar and real interest rates, putting pressure on Gold and targeting the support levels of 3629.28 and 3616.65.