Gold price remains pressured at a three-week low, after declining in the last three consecutive days, despite a nail-biting wait for today’s Federal Open Market Committee (FOMC) monetary policy meeting, especially after the previous day’s US inflation numbers. In doing so, the yellow metal takes clues from Friday’s downside break of horizontal support, now resistance, as well as the bearish MACD signals, to poke the 50-day Exponential Moving Average (EMA) support surrounding $1,980. That said, a downward-sloping RSI (14) line, not oversold, joins the aforementioned bearish indicators to keep the XAUUSD sellers hopeful of breaking the nearby EMA support. However, a convergence of the 100-EMA and an upward-sloping support line from mid-October, close to $1,960-58, appears a tough nut to crack for the bullion sellers. Following that, the previous monthly low of around $1,933 could test the bears before directing them toward the $1,900 round figure.
Alternatively, Gold price recovery needs validation from the aforementioned support-turned-resistance of near $2,010, as well as the Fed’s hawkish halt. Even so, the $2,030 and $2,080 levels will act as additional upside filters to challenge the XAUSD bulls before giving them control. Should the quote remain firmer past $2,080, the odds of witnessing a fresh yearly high past $2,100 psychological magnet can’t be ignored.
Overall, gold price is likely to remain pressured but the downside room appears limited.
