Gold prices are rallying again to the key $1863 level, which has been a very important level in the second half of 2020. It is interesting that the precious metal is testing this level as the FED announces interest rates today.
The latest Federal Reserve announcement is certain to see no change to rates, however, some analysts are considering a surprise extension of stimulus measures. Congress is currently deadlocked on the approval of a $900 billion stimulus package and this could be a chance for the Fed to push a final stimulus before the rollout of vaccines in the country. The outgoing President could also get a final victory lap on stock prices.
The U.S. dollar is making a relentless drop towards 90.00 as it trades at 90.20. A hawkish Federal Reserve would arrest the dollar’s fall and this is why the gold price is looking at a crossroads moment near the key $1863 level.
Gold Price Technical Outlook
Gold prices are heading for another test of the $1863 level and this will decide whether further gains can come in the weeks ahead. If it fails then another drop to $1800 is likely. Go long or short with a confirmation bar at this level which should come today or tomorrow. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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XAUUSD Daily Chart
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