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Gold Technical Analysis: Outlook neutral despite post-Fed rally

  • Dovish comments by Fed's Powell lifted gold by $12. 
  • The yellow metal is still stuck in a sideways channel.

Gold's short-term outlook remains neutral with prices trapped in a sideways channel.

The yellow metal jumped from $1,467 to $1,479 after Federal Reserve's President Powell sent the US dollar lower by mentioning high inflation as a prerequisite for rate hikes. 

While the post-Fed rise is impressive, a bullish breakout is still not confirmed. 

Moreover, gold is still trading within the sideways channel represented by trendlines connecting Nov. 12 and Nov. 26 lows and Nov. 20 and Dec. 4 highs. 

A close above the upper edge of the channel, currently at $1,488, is needed to confirm a channel breakout. 

On the flip side, a close below $1,455 would confirm channel breakdown and imply a resumption of the sell-off from September's high of $1,557. 

Daily chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price1474.9
Today Daily Change-0.24
Today Daily Change %-0.02
Today daily open1475.14
 
Trends
Daily SMA201466.35
Daily SMA501480.72
Daily SMA1001488.62
Daily SMA2001407.7
 
Levels
Previous Daily High1478.6
Previous Daily Low1462.8
Previous Weekly High1484.06
Previous Weekly Low1454.05
Previous Monthly High1515.38
Previous Monthly Low1445.8
Daily Fibonacci 38.2%1472.56
Daily Fibonacci 61.8%1468.84
Daily Pivot Point S11465.76
Daily Pivot Point S21456.38
Daily Pivot Point S31449.96
Daily Pivot Point R11481.56
Daily Pivot Point R21487.98
Daily Pivot Point R31497.36

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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