FUNDAMENTALOVERVIEWGold has extended thelosses yesterday after a technical breakout of the recent consolidation. Themain thing that’s been weighing on precious metals has been the hawkish centralbanks amid the renewed inflation risk.That looks unlikely tochange anytime soon as Trump has rejected Iran’s proposal to first open theStrait of Hormuz and then hold nuclear talks. Unfortunately, with US stockprices at all-time highs Trump might not feel any pressure to concede. This might even set thestage for the next big selloff if the Strait of Hormuz remains closed for muchlonger and oil prices stay elevated, thus forcing the Fed to hike interestrates in the coming months. Today, we have the FOMCpolicy decision and although the Fed is expected to keep everything unchangedamid the US-Iran uncertainty, there’s a risk of a more hawkish leaning due toresilient US data and a longer than expected US-Iran war. A neutral Fedshouldn’t bring much volatility, but a more hawkish one could add more pressureon gold.GOLD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that gold extended the losses as the US-Iran stalemate pushed oil pricesback into triple digit levels. We are trading right in the middle of the twokey trendlines, so there’s no clear level where to lean on here. We need tozoom in to see some more details.GOLD TECHNICAL ANALYSIS – 4HOUR TIMEFRAMEOn the 4 hour chart, we cansee the price reached the first key swing level at 4,552 and started toconsolidate. We have a minor downward trendline defining the current bearishmomentum. If we get a pullback into the trendline, we can expect the sellers tolean on it with a defined risk above it to keep pushing into new lows. Thebuyers, on the other hand, will look for a break to pile in for a rally intothe 5,000 level next.GOLD TECHNICAL ANALYSIS – 1HOUR TIMEFRAMEOn the 1 hour chart, there’snot much we can add here as from a risk management perspective, the sellerswill have a better risk to reward setup around the trendline. Nonetheless, wecan expect the buyers to continue to step in around the 4,552 level to keeptargeting the trendline, while a break lower will likely trigger a selloff intothe 4350 level next. The red lines define the average daily range for today. UPCOMING CATALYSTSToday we have the FOMC policy decision. Tomorrow, we get the US Q1 GDP,the US Employment Cost Index and the latest US Jobless Claims figures. OnFriday, we conclude the week with the US ISM Manufacturing PMI. This article was written by Giuseppe Dellamotta at investinglive.com.