Gold price remains on the defensive amid a modest USD uptick, focus remains on Fed decision
From a technical perspective, the Relative Strength Index (RSI) on the daily chart has moved on the verge of breaking into the overbought zone and holding back bulls from placing fresh bets. That said, the move-up along an ascending channel since June points to a well-established short-term uptrend. Furthermore, the recent breakout through the $2,525-2,530 supply zone supports prospects for additional gains. Any subsequent move up, however, is likely to confront stiff resistance near the $2,600 round figure, above which the Gold price could climb to test the ascending channel barrier, currently pegged around the $2,620-2,625 region. A sustained strength beyond the latter will mark a fresh breakout and pave the way for a further near-term appreciating move.
On the flip side, any corrective decline now seems to attract some buyers near the $2,555 horizontal zone. This should help limit the downside near the $2,530-2,525 resistance breakpoint, now turned support, below which the Gold price could slide back to the $2,500 psychological mark. A convincing break below the latter might prompt some technical selling and make the XAU/USD vulnerable to accelerate the slide towards the $2,470 horizontal support. This is closely followed by the $2,464 confluence, comprising the ascending channel support and the 50-day Simple Moving Average (SMA), which if broken might shift the bias in favor of bearish traders.
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