Gold prices enjoyed good two-way businesses on the much-awaited hawkish Fed decision, with the bulls finally fighting back control from two-month lows of $1,752.70. The Fed doubled the pace of tapering to $30 billion per month while the dot plot showed three rate hikes for 2022.
Gold Resistance Key levels at $1,795
Despite Wednesday’s turnaround, gold price could likely keep it’s bullish potential intact while it remains below a dense cluster of healthy resistance levels at $1,795. That level is the confluence of the downward-sloping 21-Daily Moving Average (DMA) and horizontal 100-DMA.
Read More: Spot Gold Current price $1,772, Bearish breakout $1,745
This premise is justified by a potential bear cross spotted on the daily sticks, with the 21-DMA looking to pierce the 100-DMA from above. Meanwhile, the 14-day Relative Strength Index (RSI) remains below the midline, keeping gold sellers hopeful. Acceptance above $1,795 will expose the next stop for bulls around $1,804, the confluence of the 50 and 200-DMAs. Further up, the $1,812 mark could be retested.
On the downside, Support of $1,745 remain on the sellers’ radars, below which the two-month lows could be back in play.
Fundamental Overview
This ‘Super Thursday’ gold price is building onto the previous rebound, although remains well below the critical resistance at $1,790. The greenback and yields hold the lower ground, in the aftermath of the Fed-driven volatile trading. Attention now turns towards the monetary policy announcements from the Bank of England (BOE) and European Central Bank (ECB) for fresh trading direction in gold.
ECB is seen boosting its regular asset purchase program
The BOE is expected to hold back a rate hike, in the face of the looming Omicron threat to the economy. Meanwhile, the ECB is seen boosting its regular asset purchase program (APP), which could likely be their way of replacing its Pandemic Emergency Purchase Program (PEPP). These are the final policy decisions of this year, which will set the tone for markets, dollar valuations and gold in the coming year.
इस महीने सोना एक संकीर्ण दायरे में मजबूती से कारोबार कर रहा है क्योंकि निवेशक केंद्रीय बैंक के अगले कदम पर स्पष्टता की तलाश कर रहे हैं। फेड को व्यापक रूप से संकेत देने की उम्मीद है कि वह बुधवार की बैठक के समापन पर प्रोत्साहन उपायों के अपने टेपिंग को तेज करेगा, जो पहले की दरों में बढ़ोतरी का द्वार खोल सकता है। कीमती धातु के कमजोर कारोबार ने निवेशकों को अपने सोने की स्थिति से बाहर निकलते देखा है। फैक्टसेट के आंकड़ों के मुताबिक निवेशकों ने लगातार तीसरे हफ्ते सोने में अपने लॉन्ग पोजीशन में कटौती की। सट्टा निवेशकों ने पिछले सप्ताह सोने में अपनी तेजी की स्थिति को 12,000 लॉट से कम किया।
Gold has been trading firmly in a narrow range this month as investors look for clarity on the central bank’s next move. The Fed is widely expected to signal that it will speed up its tapering of stimulus measures at the conclusion of the meeting Wednesday, which could open the door to earlier rate hikes. The precious metal’s lackluster trading has seen investors exit their gold positions. Investors cut their long positions in gold for the third week running according to FactSet data. Speculative investors reduced their bullish positions in gold by over 12,000 lots last week.