Gold prices soared above the key psychological price level of $1,800 per ounce on a weaker dollar and declining U.S. Treasury yields. The greenback slipped from a more than three-month peak and made the yellow metal less expensive for investors using rival currencies. But the bullion’s gains were capped by trepidation as investors wait for the Federal Reserve’s meeting later today. It should be noted that the Fed’s hawkish tone pulled gold prices down by 7% in June.

Spot gold is currently trading at $1,805.03 per ounce as of 0715 GMT.

Jeffery Halley, a senior market analyst at OANDA, noted that gold benefitted from risk-hedging purchases ahead of the Fed’s meeting. But prices remain pegged at the $1,790-1,810 range. He predicted that would change after the meeting.

Edward Meir of ED&F Man Capital Markets added that any selloff would be careful and deliberate as the current has already considered much of the Fed’s move. He is expecting the central to announce a tapering schedule and keep the interest rates untouched.

On the technical front, Margaret Yang of DailyFX said bullion prices entered a technical pullback after breaking an ascending channel. She sees an immediate resistance price level at $1,835 and a support level at $1,800 per ounce. Yang also mentioned that the MACD indicator suggests a weak bullish momentum.

The Federal Open Market Committee will release its policy statement today at 1800 GMT, followed by a news conference by Fed Chair Jerome Powell. Experts expect the central bank to discuss the timing and mechanics for tapering its $120-billion monthly bond purchases and how to dial back its ultra-low interest rates.

Several Fed bank presidents support tapering soon. They include Robert Kaplan of the Dallas Fed, Patrick Harker of the Philadelphia Fed and James Bullard of the St. Louis Fed. But Powell, Fed Vice Chair Richard Clarida and New York Fed President John Williams prefer a slow approach in withdrawing economic support.

Meanwhile, the International Monetary Fund maintained its global growth forecast for 2021 at 6%.  But it raised its forecasts for the U.S. and Britain to 7.0% and lowered its forecast for China by 0.3. The changes were based on COVID-19 vaccination and fiscal support.