Gold Price Forecast: Bulls pushing towards $1,800
|- The BOE disappointed investors right after the Fed delivered as planned.
- US indexes are poised to open at record highs as European stocks soar.
- XAU/USD recovered to its comfort zone around $1,790 a troy ounce.
Gold added over $20.00 ahead of Wall Street’s opening and trades around $1,792.00 a troy ounce, trimming all of its post-Fed losses and returning towards its comfort zone. Market players are struggling to digest the latest headlines from central banks. On Wednesday, the US Federal Reserve announced it will start trimming its pandemic facilities, at a pace of $15 billion per month starting this month. The announcement was no shocker as Chief Jerome Powell anticipated it in the previous meeting.
The Bank of England just unveiled its monetary policy decision, keeping rates on hold despite the market’s speculation of a rate hike. Just 2 out of 9 MPCs voted for a hike, disappointing investors and sending the pound sharply down against most major rivals.
At the same time, global indexes are on the run, with Wall Street poised to hit all-time highs.
Gold price short-term technical outlook
XAU/USD trades around the 23.6% retracement of its latest daily advance after meeting buyers around the 61.8% retracement of the same rally on Wednesday. The overall technical picture is neutral, as the bright metal has hovered around the current level for most of the last two weeks, recovering sharply towards it on spikes on either side of it. The October high at 1,813.80 is a critical resistance level to break to gain bullish traction, while bears would take control only once below 1,756.60.
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