Gold bears need validation from 200-SMA on Fed day
Gold refreshes weekly low, taking offers around $1,778 during early Wednesday. The yellow metal justifies a downside break of 100-SMA, suggesting further weakness towards a three-week-old support line near $1,775. However, 200-SMA acts as additional support around $1,770 to challenge bears before the Fed reveals the tapering surprise. Should the Fed matches or surpasses hawkish market hopes, gold’s downside to 23.6% Fibonacci retracement near $1,748 can’t be ruled out.
Alternatively, the 100-SMA level of $1,785 guards the immediate upside of the commodity, a break of which will direct buyers to the weekly peak near $1,796. In a case where the gold bulls keep reins past $1,796, the $1,800 threshold and 78.6% Fibonacci retracement level close to $1,810 will be in focus. Overall, gold sellers are in the driver’s seat before the likely bearish event for the metal.
Alternatively, the 100-SMA level of $1,785 guards the immediate upside of the commodity, a break of which will direct buyers to the weekly peak near $1,796. In a case where the gold bulls keep reins past $1,796, the $1,800 threshold and 78.6% Fibonacci retracement level close to $1,810 will be in focus. Overall, gold sellers are in the driver’s seat before the likely bearish event for the metal.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.