Gold buyers still occupy driver’s seat after Fed, eyes on ECB no

Jul 27, 2023

Despite the Fed-inflicted volatility, the Gold price remains bullish as markets brace for the European Central Bank (ECB) monetary policy meeting. That said, successful trading beyond the 50-EMA and 200-EMA, respectively near $1,950 and $1,904, keeps the buyers hopeful. Also acting as short-term support is the 50% Fibonacci retracement of the pair’s February-May upside, near $1,935. It’s worth noting that the 61.8% Fibonacci retracement level adds strength to the $1,904 support while the $1,900 round figure and June’s low of $1,893 are some extra downside filters that can defend the XAUUSD bulls if they’re on the verge of losing the throne. In a case where the quote remains bearish past $1,893, the odds of witnessing a slump toward the early March swing high of around $1,854 and then to February’s bottom of $1,804 can’t be ruled out.

Even so, the Gold buyers need to provide a successful upside break of the 10-week-old horizontal resistance area around $1,985 to tighten their grip. That said, the $2,000 psychological magnet and the 23.6% Fibonacci retracement of around $2,005 may act as additional resistances to test the XAUUSD bulls before directing them to April’s peak of around $2,050. Following that, the yearly high of around $2,067 will regain the market’s attention.

Overall, the Gold Price remains on the bull’s radar unless declining below $1,893.