Last week, GOLD prices fell sharply in the global market as the NFP data (forecast 181k, actual 266k) was better than expected. Gold prices started their bullish rally after finding some decent support at $1446.92, the low of 12th November. However, the bullish rally was short-lived as the GOLD prices failed to clear the resistance at $1488.57.
Currently, the price of gold is testing the bullish trend line support at $1463.63 and failing to regain bullish momentum might push the gold price towards the next critical support level at $1446.92. A daily closing of the gold prices below the support at $1446.92 might result in a massive fall in the gold price.
On the upside, XAUDUSD needs to break above the resistance at $1490.31 to establish an extended bullish rally. A clear break of the price above the high of 4th December at $1490.31 might lead this pair towards the next major resistance at $1517.80. Breaking above this level might be tough for gold bulls since there are plenty of resistance candles, showing that sellers are strong.
Most of the conservative investors are cautiously waiting in the sideline for the FOMC statement scheduled this Thursday. Any dovish statement from the FED officials might push the price significantly higher. On the contrary, a hawkish statement might result in another big drop in the XAUDUSD. Considering all the parameters, it might be a wise decision to wait for the FED economic projections.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.