- Dovish comments by Fed’s Powell lifted gold by $12.
- The yellow metal is still stuck in a sideways channel.
Gold’s short-term outlook remains neutral with prices trapped in a sideways channel.
The yellow metal jumped from $1,467 to $1,479 after Federal Reserve’s President Powell sent the US dollar lower by mentioning high inflation as a prerequisite for rate hikes.
While the post-Fed rise is impressive, a bullish breakout is still not confirmed.
Moreover, gold is still trading within the sideways channel represented by trendlines connecting Nov. 12 and Nov. 26 lows and Nov. 20 and Dec. 4 highs.
A close above the upper edge of the channel, currently at $1,488, is needed to confirm a channel breakout.
On the flip side, a close below $1,455 would confirm channel breakdown and imply a resumption of the sell-off from September’s high of $1,557.