Gold Price Analysis: XAU/USD is back in the middle of some key levels ahead of FOMC


  • 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.

Gold FOMC levels

Additional levels

XAU/USD

Overview
Today last price 1717.66
Today Daily Change 3.08
Today Daily Change % 0.18
Today daily open 1714.58
 
Trends
Daily SMA20 1722.66
Daily SMA50 1700.76
Daily SMA100 1645.35
Daily SMA200 1571.41
 
Levels
Previous Daily High 1720.86
Previous Daily Low 1692.33
Previous Weekly High 1745.12
Previous Weekly Low 1670.76
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1709.96
Daily Fibonacci 61.8% 1703.23
Daily Pivot Point S1 1697.65
Daily Pivot Point S2 1680.73
Daily Pivot Point S3 1669.12
Daily Pivot Point R1 1726.18
Daily Pivot Point R2 1737.79
Daily Pivot Point R3 1754.71

 

 

Share: Feed news

All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.

Recommended content


Recommended content

Editors’ Picks

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data. 

AUD/USD News
USD.JPY jumps toward 144.00 on the road to recovery

USD.JPY jumps toward 144.00 on the road to recovery

USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday. 

USD/JPY News
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.

Gold News
Ethereum attempts recovery following first rate cut in four years

Ethereum attempts recovery following first rate cut in four years

Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures