Technical Analysis: Gold heads to $1,790 key hurdle with eyes on Fed tapering
Risk-on mood helps gold extend the early-week rebound towards the key upside resistance area during early Wednesday. In addition to the confluence of 200-EMA, a descending trend line from September 03 and a five-week-old support line, fears of the Fed’s tapering also challenge gold buyers. Should the Fed refrains from providing any signals to the 2021 taper, versus the widely expected move, gold prices may overcome the stated resistance near $1,790 and rush towards the $1,834 double top. During the run-up, the $1,800 threshold and multiple stops marked during late August around $1,817-18 may test the bulls.
Meanwhile, pullback moves may aim for 50% and 61.8% Fibonacci retracement levels of August 09 to early September upside, respectively near $1,755 and $1,737. Following that, the August 10 low near $1,710 and the $1,700 round figure could flash on the bears’ radars before the yearly low close to $1,678 gains the market’s attention. Overall, gold approaches tough resistance to justify the strength of recovery moves as markets brace for the Federal Open Market Committee (FOMC) monetary policy meeting announcement