Gold (XAU/USD) struggled to preserve its bullish momentum last week and settled below $1,850. The level to watch is the 200-day SMA at $1,810 as the yellow metal is set to remain bid above this mark, FXStreet’s Eren Sengezer reports.
“On Wednesday, the IHS Markit will publish the Manufacturing PMI reports for Germany, the eurozone, the UK and the US. More importantly, the FOMC will announce its policy decisions alongside updated economic projections. Investors don’t expect any changes in the current policy stance but any convincing hints toward adjustments in the asset purchase program could impact the performance of Wall Street’s main indexes. An upsurge in US stocks could be expected to hurt the buck more than it does the precious metal.”
“As long as the price remains above the 200-day SMA, which is currently located at $1,810, buyers could look to remain in control of the XAU/USD’s movements.”
“On the upside, the initial resistance is located at $1,850, the Fibonacci 61.8% retracement of the June-August rally. When the price broke above that level earlier in the week, it failed to reach the next Fibo resistance, 50% retracement, at $1,900 and created an interim hurdle at $1,875, which is enforced by the 50-day SMA.”
“Supportsare located at $1,810 (200-day SMA), $1,800 (psychological level) and $1,774 (Nov. 11 low).”