GOLD Price Heading Towards Critical Support Ahead Of FOMC
Gold price sharply falls in the global market after hitting the critical resistance level at $1490.02. The downfall was intensified by the positive NFP data. Since the price of gold is measured in the U.S dollar, a slight change in the U.S dollar index has a significant impact on this precious yellow metal. Currently, gold bears are eyeing on the trend line support at $1465.40. Any bullish price action signal near the support at $1465.40, might push the gold price towards the nearest resistance at $1477.39. If the gold bulls manage to break above $1490.02, the gold price might head towards $1517.17. This level might bring back the gold bears since we have plenty of resistive candles.
On the downside, the imminent challenge for the bears lies at the support at $1465.40. Breaking below this level might push the price towards the next support at $1456.77. A daily closing of the price below the $1456.77, might push the precious yellow metal towards the low of 12th November at $1446.46. This level is going to play a crucial role since breaking below this level might bring back the aggressive sellers.
On the contrary, bulls gaining control from that level might result in another rally. Considering the technical and fundamental parameters, it’s better to wait for the FED rate hike decision and FOMC statement, since it might give a clear clue regarding the gold price next move.Download our latest quarterly market outlookfor our longer-term trade ideas.
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