Gold, Key Levels You Should KnowGold was able to gain 0.55% yesterday as Asian markets opened green. The volatility remains on a high note as the markets are waiting for the Fed interest rate decision.
Though it was stated clear during the previous meetings and the Jackson Hole conference that the Federal Reserve is not willing to cut rates, current economic state and outlooks announced by Mr. Jerome Powell will play a significant role in the valuation of the US Dollar.
The safe-haven precious metal is eager to break the dynamic resistance and continue the uptrend. At the time of writing of this article Gold price on Overbit is $1964 and is above the 200MA on a 4H chart, investors might look into the breakout from the descending channel to push the price further towards $1990 – $2000.
On an hourly chart of XAUUSD, there is a formation of another pattern which signals a short-term bearish continuation, hence there is a probability that during the FED meetings, Gold may show a false breakout and get back into the descending channel.
If that is the case, then we should expect a test of a static and dynamic resistances at $1974 – $1975. If Gold’s uptrend is rejected by resistance aforesaid, then it should retrace towards $1960 and stay above this level to gain momentum, else bears will push the price down to $1939 – $1940.
Gold will remain volatile and is still transversally related to the US economy, US Presidential Elections is one of the key elements for Gold investors.