Gold Price Unchanged Ahead of Fed Reserve Chairman Powell’s Testimony
Gold price finished yesterday’s trading virtually unchanged without any major economic releases and significant developments on the coronavirus outbreak. XAUUSD initially traded higher to an intraday high at $1,576.82 before falling during the New York session to close at $1,571.86. It was only 54 cents above where it opened for the day.
Today, we could see some volatility on XAUUSD as Federal Reserve Chairman Jerome Powell is scheduled to appear in Congress. Speaking in front of the House Financial Services Committee, he is testifying on the Semi-Annual Monetary Policy Report at 3:00 pm GMT. Market participants will be keeping an ear out for his remarks on the economy and how he thinks the coronavirus could impact growth. If he sounds concerned about the economy as the outbreak lingers, we could see the dollar weaken and XAUUSD trade higher.
On the 4-hour time frame, we can see that gold price has been making higher lows and lower highs. When you connect them, a symmetrical triangle becomes apparent. In forex trading, this is considered as a neutral indicator. This chart pattern suggests that gold price may trade in either direction. Near-term resistance should be around $1,585.20 where the top of the triangle is. Meanwhile, support is at $1,554.00 where the bottom of the triangle and the 200 SMA coincide.
A closer look at the hourly time frame suggests that sellers could be more dominant. By connecting the lows of February 5, February 6, and February 7, we can see that gold price is already trading below support of the rising trend line. If sellers can sustain their momentum, XAUUSD could soon trade even lower.More content