Gold Technical Analysis: Struggles to stay above 100-hour SMA, focus remains on FOMC
|- Gold gains traction for the third consecutive session on Wednesday.
- Bulls struggled to extend the momentum beyond the 100-hour SMA.
- The FOMC policy update will be eyed for a fresh directional impetus.
Gold edged higher for the third consecutive session on Wednesday, albeit remained below the overnight swing high and seemed struggling to extend the momentum further beyond 100-hour SMA.
This is closely followed by a resistance marked by 38.2% Fibonacci of the $1484-$1459 recent slide from the vicinity of 100-day SMA, which should act as a key pivotal point for short-term traders.
A subsequent move beyond the mentioned barrier might be seen as a key trigger for intraday bullish traders and support prospects for additional gains amid reviving safe-haven demand.
Some follow-through buying beyond 50% Fibo. level, around the $1471 area, might now set the stage for a further appreciating move back towards 100-day SMA, around the $1488 region.
Meanwhile, technical indicators on hourly charts are holding in the bullish territory but have struggled to gain any meaningful positive traction on the daily chart, warrant some caution.
Heading into Wednesday's key event risk, the latest FOMC monetary policy update, investors' reluctance to place any aggressive bets might further collaborate towards capping the metal.
Gold 1-hourly chart
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