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Technical Analysis: Gold carries pullback from 100-bar SMA, monthly support line ahead of US GDP, FOMC

Gold prices defy the previous two-day gains while taking a U-turn from 100-bar SMA and monthly support-line. However, the bullion's gains are capped by the market's cautious momentum ahead of the key data/event viz. FOMC and the US GDP. As a result, the bulls are waiting for the further weakness of the US dollar to keep the rise above $1,700. In doing so, a two-week-old descending resistance line near $1,735 will be important as it holds the key to the further rise towards the monthly high, also the multi-year top, close to $1,750. It should also be noted that the precious metal's further rise past-$1,750 enables it to probe the year 2012 top near $1,796.

If at the greenback bulls return to the desk and drag the yellow metal below $1,700 mark comprising the said support line, 100-bar SMA near $1,693 might check the selling pressure. Should there be a clear downside past-$1,693, the previous week's low near $1,660 and March 26 high close to $1,645 could lure the bears.

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