- Gold is trading 0.15% higher ahead of the key FOMC statement later on Wednesday.
- USD 1720.00 is close to the middle of the key consolidation area the precious metal is currently in.
XAU/USD 4-hour chart
Gold has been in a firm consolidation mode since 14th April and the zone is between USD 1661.18 and 1765.38 per troy ounce. The market has now stalled at the mean value area of the current consolidation period marked by the red rectangle. This is the area where the price has touched the most times in the period mentioned above.
There could be some rejection here but the price action will largely be based on fundamental developments later on in the session. If anything, at the moment the price action is slightly bearish as a lower high and lower low pattern has formed. The main support is the black line at the bottom of the consolidation but of the previous wave low at USD 1670.76 per troy ounce gets broken this will also be a bearish signal.
The price is trading right between the 55 and 200 moving averages and the indicators are showing a mixed picture too. The MACD looks like its turning over as the histogram bars are now getting smaller in size. The Relative Strength Index indicator is above the 50 mid-line but is sloping down. This can change very quickly if the market turns higher. It seems gold needs a catalyst for a decent move and this evenings FOMC rate decision and statement could just be the shakeout we are looking for.
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Additional levels
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