Gold Price Analysis: XAU/USD remains trapped between key DMAs ahead of Fed week

Gold awaits a breakout from the recent trading range.
XAU/USD remains locked between 50-DMA and 200-DMA.
All eyes on the Fed decision and a potential US fiscal stimulus deal.

Dhwani Mehta FXStreet

Gold (XAU/USD) resumed its bearish momentum following a brief recovery from multi-month lows sub-$1800 in the last week.

The sellers returned after the metal faced rejection at the 50-daily moving average (DMA), now at $1875.

On Wednesday, gold fell as much as 1% to near the $1825 region and spent the rest of the week meandering near the latter, with the upside attempts capped by the 21-DMA of $1841.

Gold Price Chart: Daily

XAU/USD’s daily chart clearly shows that the price continues to oscillate in a defined range. Acceptance above the 50-DMA is critical to reviving the recovery momentum from four-month troughs of $1765.

Meanwhile, the 200-DMA support at $1809 is the level to beat for the bears. The 14-day Relative Strength Index (RSI) settled the week at 47.01, keeping the odds for additional downside alive.

Further, a failure to deliver a weekly closing above the critical short-term hurdle of 21-DMA, also suggests that more declines could be in the offing.

However, the Fed’s final monetary policy decision of this year and a likely US fiscal stimulus deal could have a significant impact on the gold price action in the week ahead.

Gold Additional levels

XAU/USD

Overview
Today last price	1839.34
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1839.34

Trends
Daily SMA20	1838.62
Daily SMA50	1874.97
Daily SMA100	1910.26
Daily SMA200	1809.34

Levels
Previous Daily High	1847.78
Previous Daily Low	1824.16
Previous Weekly High	1875.34
Previous Weekly Low	1822.22
Previous Monthly High	1965.58
Previous Monthly Low	1764.6
Daily Fibonacci 38.2%	1838.76
Daily Fibonacci 61.8%	1833.18
Daily Pivot Point S1	1826.41
Daily Pivot Point S2	1813.47
Daily Pivot Point S3	1802.79
Daily Pivot Point R1	1850.03
Daily Pivot Point R2	1860.71
Daily Pivot Point R3	1873.65

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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