- Gold price consolidates the two-day recovery, as focus shifts to Fed.
- Evergrande fears ease, risk appetite returns and DXY retreats.
- Gold bears in driver's seat as focus shifts to FOMC.
Gold price remains in the green for the fourth day in a row, consolidating the two-day recovery from over one-month lows of $1742. The bulls turn cautious and refrain from placing fresh bets ahead of the all-important Fed monetary policy decision, with increased expectations that Jerome Powell and company could offer a tapering timeline. If the Fed refrains from making any announcement on tapering, gold price could see buying resurgence, although the gains could be capped by the calm from China Evergrande and risk-on action in the US stocks.
Read: Will gold find acceptance above this key level? Evergrande, Fed in focus
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold is failing to find acceptance above a stack of strong resistance levels around $1778, which is the intersection of the Fibonacci 61.8% one-month, Fibonacci 23.6% one-day and SMA50 four-hour.
Gold bulls will regain complete control above the latter, paving way for a test of $1782, where the SMA10 one-day and the previous day’s high converge.
The next relevant upside target is envisioned at $1785; the meeting point of the Fibonacci 61.8% one-week and the pivot point one-day R1.
If the buying interest intensifies, then a rally towards $1794 cannot be ruled out. At that point, the SMA50 one-day coincides with the pivot point one-day R2.
Alternatively, a strong cushion is seen at $1769, the intersection of the SMA5 one-day and Fibonacci 38.2% one-week.
The Fibonacci 61.8% one-day at $1766 will be the next downside target for sellers.
The last line of defense for gold bulls is aligned at $1761, the Fibonacci 23.6% one-week.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
USD/JPY is staging a solid comeback above 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price stalls rebound below $2,330 as US Dollar recovers
Gold price is holding the rebound below $2,330 in Asian trading on Thursday, as the US Dollar recovers in sync with the USD/JPY pair and the US Treasury bond yields, in the aftermath of the Fed decision and the likely Japanese FX intervention.
Solana price dumps 21% on week as round three of FTX estate sale of SOL commences
Solana price is down almost 5% in the past 24 hours and over 20% in the last seven days. The dump comes as the broader crypto market contracts with Bitcoin price leading the pack as it slides below the $58,000 threshold to test the Bull Market Support Band Indicator.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.