Gold prices pare the previous day’s downside break of a six-week-old rising trend line, as well as the 21-DMA around the mid-2021 peak. As the RSI line remains far from oversold territory, the latest breakdown can keep favoring sellers amid firmer US Treasury yields ahead of the Federal Reserve’s (Fed) widely anticipated rate hike. That said, a horizontal region comprising highs marked during November 2021 and early February of 2022, close to $1,880-77 lures the bears ahead of highlighting the 50-DMA level of $1,864.
On the contrary, a surprisingly dovish hike may trigger the metal’s rebound, in which the previous support line, around $1,957, becomes crucial to watch. Should gold buyers dominate past $1,957, the $2,000 threshold will be on their radars. It’s worth mentioning that the bullion’s run-up beyond $2,000 could escalate the run-up towards the $2,045-50 resistance-zone, a break of which won’t hesitate to refresh the all-time high marked in 2020 around $2,075.
To sum up, gold sellers are inclined to retake controls but it all depends upon the Fed.