Gold price action on the XAU/USD has registered the fourth day of gains, as the spillover from last week’s poor consumer sentiment data continues into this Monday’s trading sentiment. However, Tuesday’s speech by Fed Chair Jerome Powell at an online town hall event and the FOMC minutes scheduled for release on Wednesday could decide the short-term price direction on the yellow metal.
In particular, traders would be studying the FOMC minutes for language that supports an early tapering agenda. This could decidedly alter the sentiment on the asset, with the greenback expected to regain strength if indeed the minutes reflect the recent comments made by Fed policymakers.
Until then, technical plays will dominate and this is playing out presently, with gold price stalling at the $1789 resistance mark.
Gold Price Outlook
Monday’s active candle has hit resistance at 1789.49. If the price can break this level, 1800.00 and 1815.20 become additional targets to the north. The channel’s lower border is expected to meet the next resistance point at 1828.52, which marks the floor of the resistance zone.
On the other hand, a decline from 1789.49 allows the bears to initiate a correction towards 1763.30, with 1741.01 and 1719.13 serving as additional downside targets. Below these levels, 1699.43 and 1689.59 become available.