Gold Price Analysis: XAU/USD eyes key $1831 support after benign Fed – Confluence Detector
Gold (XAU/USD) wavers below $1850, consolidating the Fed-led downside, as traders await the US Q4 advance GDP release for a fresh direction. Gold lost ground once again on Wednesday after the Fed left its key rates unchanged while maintaining the current bond-buying at $120 billion per month. Benign Fed and mounting tensions over the covid surge knocked-of the stocks and boosted the safe-haven demand for the US dollar.
Gold Price Analysis: XAU/USD trades below the 200-day SMA
Gold is currently trading below the 200-day Simple Moving Average (SMA) at $1,848, having closed below the long-term technical line on Wednesday.
It remains to be seen if the latest break below the widely-tracked average is sustained. The SMA was breached in late November and couple of times earlier this month. However, sellers failed to establish a foothold under the average support then.
Should sellers succeed this time, more bears may join the market, yielding a deeper decline. Major support is seen at $1,764 (November low). A close above the lower high of $1,875 created on Jan. 21 w
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