- The yellow metal was unable to hold above $1,230/oz and pulled back.
- The outlook for gold is tilted to the downside ahead of the Asian session.
Gold rose earlier today to $1,236 and tested weekly highs but failed to break higher and pulled back, erasing all daily gains. Price dropped to $1,225 during the US session and near the end of the day, was hovering near the lows with a negative tone and flat for the day.
The metal pulled back as the US dollar recovered ground across the board amid a rally in Wall Street and as US yields moved back to the upside. Gold remained below $1,230 during US President Trump’s press conference. Now attention turns to the FOMC statement to be released tomorrow. No change in interest rates is expected and the words used by the Fed will be watched closely.
XAU/USD Technical outlook
The daily chart indicates that the bullish tone keeps fading, but also that any further slide is not yet confirmed, as technical indicators retreat within positive ground and with limited strength, while the price keeps battling with a bullish 20 DMA, which develops above a bearish 100 DMA, explained Valeria Bednarik, Chief Analyst at FXStreet.
According to her, in the shorter term, the 4 hours chart, shows readings leaning to the downside without confirming it, as indicators head lower, the Momentum around its 100 level and the RSI currently at 46, as the price remains trapped between moving averages.
To the downside, support levels are seen at $1,219, $1,211 and $1,203. On the upside resistance could be located at $1,236 followed by $1,243 and $1,251.
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