Update: Gold attracted some purchases near the region at $ 1,760 on Thursday, and at the moment, it looks like it has stopped declining after the FOMC with an area of $ 1,787 or weekly peaks. The U.S. dollar witnessed aggressive sales and destroyed revenues inspired by the Fed the day before to month-highs. The US Federal Reserve has said it is likely to start cutting monthly bond purchases by the end of this year. This, however, disappointed some investors who were waiting for the immediate start of the lifting of the large-scale stimulus of the pandemic era, and caused some profits around the dollar. This, in turn, was seen as a key factor that provided some support to dollar-denominated goods.
However, growth has not had bullish confidence and risks failing fairly quickly amid a prevailing sentiment for risk, which tends to undermine the demand for gold in a safe haven. Global risks received a strong boost after the People’s Bank of China introduced more money into the banking system, easing concerns over the effects of the China Evergrande debt crisis. This, along with the growing propensity of Fed officials to raise interest rates in 2022 should be an obstacle to unprofitable yellow metal. So, it would be wise to wait for steady forces beyond $ 1,780 before posing to resume this week’s rebound from one-month lows.
Previous update: The price of gold is trying a soft rebound, but remains in the red for the second consecutive session ahead of the decision of the monetary policy of the BOE. The BOE is likely to follow the Fed’s signal as it declines, in light of rising inflation expectations in the UK. However, the decisions of the central bank are likely to play a second violin amid continuing fears about the history of a potential default of the China Evergrande group. Updates to the $ 3.5 trillion expense account will also be tracked amid the bust this Thursday.
Read: Gold will remain volatile within range amid Fed Hawk, Evergrande crisis
Gold value: key levels to view
The Detector of technical mergers shows that gold is fighting below direct resistance at $ 1765, which is the convergence of the previous day’s low and SMA5 in one day.
On a solid break over the latter the Golden Bulls could test a powerful hurdle of $ 1,771, where Fibonacci was 38.2% in one week, Fibonacci 23.6% in one day and SMA5 in four hours.
The next corresponding barrier is up-$ 1774, a merger of the four-hour SMA10 and 38.2% Fibonacci in one day.
The price of gold could face a wall of resistance around $ 1777 if the recovery momentum continues. This level is the Fibonacci convergence of 61.8% of the one-day, one-month and SMA10 one-day.
On the other hand, immediate support awaits $ 1761, where the previous minimum four-hour meeting with a turning point of the one-day S1 and Fibonacci is 23.6% for the week.
A sharp drop below the latter cannot be managed by setting the next support at $ 1752, which is the fulcrum of the one-day S2.
The last line of defense of golden bulls is observed at the low of the previous week – 1745 dollars.
Here’s what it looks like on a tool
About the technical merger detector
TCD (Technical Confluence Detector) is a tool for determining and determining those price levels where there is an overload of indicators, moving averages, Fibonacci levels, breeding points, etc. points for anti-trend strategies and hunt several points at a time. If you are a medium- and long-term trader, this tool will allow you to learn in advance about price levels where the medium- and long-term trend can stop and rest, where to expand positions or where to increase your position size.