Gold reamined stuck in a trading range, awaits next week’s Fed decision
|Gold extended its near-term consolidative price-action and remained closer to a 10-month low level touched on Monday.
Currently trading with mild bearish bias for fourth session in the previous five, around $1169 region, renewed US Dollar strength, primarily led by its strong gains against the shared currency after Thursday’s ECB decision, is seen weighing on the precious metal. A stronger greenback tends to dent demand for dollar-denominated commodities - like gold. Adding to this, the prevalent buoyant sentiment surround equity markets is doing little to lend any support to the yellow metal's safe-haven appeal.
Looking at the broader perspective, the metal has been confined in a narrow trading range, below $1200 psychological mark, since the beginning of this month as investors cautiously await for next week's FOMC meeting in order to gauge possibilities of further Fed rate-hike action in 2017, which would eventually trigger the next leg of directional move for the non-yielding precious metal.
Technical levels to watch
A follow through selling pressure below its immediate support near $1165 is likely to accelerate the slide back towards $1160 strong support, which if broken is likely to turn the commodity vulnerable to break through 10-month lows near $1157 level and head towards testing its next major support near $1152-50 region. On the upside, momentum above $1175 immediate resistance is likely to get extended towards $1178-80 resistance above which the metal is likely to aim towards testing weekly high resistance near $1188 region before eventually aiming towards its next major hurdle near $1195-97 region.
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