Last week, gold managed to snap a three-week losing streak and rose more than 1% to close around $1,720. As FXStreet’s Eren Sengezer notes, XAU/USD bulls defend $1,700 ahead of the FOMC meeting while USD’s market valuation remains the primary driver of gold movements.
See – Silver Price Analysis: XAG/USD to sink towards $20 by year-end – CE
Key quotes
“On Tuesday, Industrial Production and Retail Sales data will be featured in the US economic docket. A stronger-than-expected increase in Retail Sales could provide a boost to market sentiment and weigh on USD.”
“The US Federal Reserve will announce the Interest Rate Decision and publish its updated Economic Projections on Wednesday. Investors don’t expect to see any changes to the Fed’s policy settings but the Q&A session could trigger sharp fluctuations in T-bond yields and impact the greenback market valuation. If yields turn south, XAU/USD is likely to extend its rebound and vice versa.”
“On the upside, $1,745 (Fibonacci 38.2% retracement of February-March drop, 20-day SMA) aligns as key resistance. A daily close above that level could open the door for additional gains toward $1,765 (Fibonacci 50% retracement).”
“The first support could be seen at $1,700 (psychological level, March 12 low). If sellers manage to drag the price below that level, $1,676 (ending point of February-March drop) could be seen as the first target before $1,670 (June 1, 2020, low).”
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