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Technical Analysis: Gold prices aim for the monthly resistance line on Fed day

Gold prices seem to pick-up the bids around $1717/18 as broad US dollar weakness ahead of the US Federal Reserve monetary policy meeting favor the yellow metal. However, a downward sloping trend line from May 18, currently near $1736 could keep the bullion's further recovery capped. However, any disappointing comments from the Fed Chair, or downbeat economics/rate projections might not refrain from fueling the safe-haven towards the previous month's top close to $1765. It should be noted that the early-month peaks near $1745 can act as additional upside barrier during the precious metal's upside.

During the quote's downside, which is more considering the greenback's pre-FOMC weakness, $1700 and the monthly low near $1670 might entertain the short-term sellers. If at all the quote fails to bounce off $1670, a falling trend line from May 27, at $1662 now, could offer another point to take a U-turn, which if ignored could fetch the prices towards 61.8% Fibonacci retracement level around $1,641.60/50.

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