Technical Analysis: Gold bounces off weekly support line, inside key triangle, ahead of Fed decision
Gold prices defy the previous day's pullback from the monthly resistance line while attacking $1,960. The yellow remains on the front foot as the US dollar marks mild losses ahead of the US Federal Reserve (Fed) meeting, up for 18:00 GMT. Although the monthly triangle formation restricts the bullion's short-term moves between $1,969 and $1,918, gradually strengthening the MACD histogram can take clues from upbeat FOMC, widely anticipated, to direct the bulls towards the $2,000 threshold. However, the monthly peak surrounding $1,992/93 can question the buyers on their way up.
Meanwhile, a downside break of an ascending trend line from September 09, at $1,951.30 now, can recall $1,940 before attacking the triangle support near $1,918. In a case where the bears sneak in around $1,918, the $1,900 mark becomes important as it holds the gate for the further downside towards August month's low close to $1,862.