The gold price failed to have a daily close below the $1695 support level. Therefore, the price remains to trade above the buyers’ zone but can it create a new higher high? Read more into today’s Gold Technical Analysis.
Gold managed to have a bearish rejection and a bullish daily close above the $1695 support level. However, the bearish rejection is not strong to say that the price may sustain higher. As the price consolidates at the dynamic level on 20 EMA on the daily chart, the bearish price action is likely to react.
What FOMC Can Do with Gold?
Gold failed to remain bullish from the beginning of this week despite the US Dollar was weak. The drop in the US yields, usually, affect gold prices but the decline in the Yield did not put a strong impact on Gold.
The Fed has little things to do in today's FOMC, as the central bank has shown the US dollar to fly without any meeting. Currently, the COVID-19 outbreak expanded to 1-million people in the United States and that might put pressure on FED.
Central banks are struggling to overcome the situation regarding the COVID-19 outbreak, therefore, a further indication of stimulus program may increase the safe-haven demand for gold.
Can Gold Break Below the $1695 Level?
In the 4-hour chart, Gold is trading above $1700 levels and it may push higher after a consolidation. The current price action indicates that any 4-hour close above $1715 would indicate upcoming bullish interventions towards $1750. On the other hand, the price has some bearish potentiality due to a potential double to $1730 level. So, a daily close below $1695 would indicate further fall in the price with a target of $1650.
Moreover, the price is getting minor barriers from 20 EMA. Therefore it is important for the price to overcome the static level of $1715. In that sense, a bullish hourly close above $1715 may increase further bullish possibility. Moreover, the RSI is moving down from the potential 70 zones, and touch to 30 levels may influence the price to test the $1695 area again.
Overall, Gold may require some fundamental reasons to make a new high above the $1715 level. Therefore, further easing programs from FED may increase the bullish price action gold.