Author: Mr. Amar – Technical Analyst
The yellow metal rose during the last two days, which made three weeks in a row now. Gold now has crossed the key hurdle to the north the previous day, as traders rushed to traditional risk-safety amid the market’s anxiety over the US Federal Reserve’s (Fed) next step. Adding to the bullish impulse could be geopolitical tensions and downbeat economic forecasts by the International Monetary Fund (IMF).
Tomorrow’s FOMC rate decision and chair Powell’s subsequent press conference will hopefully give the markets a clear idea of the number and speed of interest rate hikes in the US this year, and next, and how the central bank will start to reduce its bloated balance sheet. Increasingly hawkish market expectations are starting to be reined back and tomorrow’s press conference will hopefully give markets more detail and temper the current volatile market conditions.
With XAU/USD closed above the yearly resistance at $1848, it has now become support and retail traders are focusing on the retracement level for taking long opportunity towards $1877. Overall, Gold prices have already crossed the key hurdle to the north but need to convince bulls.