Gold is starting to slip under short-term key figures, as the focus is on the Fed meeting this week
Gold makes way under both the 100 and 200-hour moving averages
ForexLive
Buyers were looking for a break on Friday, when stops were running just above the $ 1,350 level, but it was quickly reversed as the dollar stuck among some better data later in US trading. The focus we are turning to the new week is at the Fed with the FOMC meeting on Wednesday set to give markets a better idea of what to expect in terms of interest rates and trading bias for risk permits this week.
There are some hints about hopeful optimism in early industries, but it is rapidly fading with European stocks now near flat levels and US futures only up by 0.1[ads1]%. That said, gold is still weaker with profits before we approach the key event later in the week.
When we look at technical, the price begins to creep under the 200-hour MA (blue line) now, and it would signal the sellers are getting back control. If the sellers handle a break here, they will establish a more bearish time difference in the session going forward.
Additional support is seen around $ 1,330 before the 38.2 retracement level $ 1,326.47 comes into play. Finally, market participants are taking a breather at the moment after the races higher since late May. I still expect gold to have much more upside if the Fed decides to become more dovish this year.
But if it comes as soon as the week's meeting, we must see. Otherwise, if the Fed sends a more assertive signal in breaks / remains neutral, then we could see a further retracement in gold, as the focus will return to global trade tensions to see how it will force the Fed's hand in the coming months. [19659008]
