- Gold neared the critical 200-day moving average (MA) for the first time since June 14.
- The long-term MA hurdle could be scaled convincingly if the Fed signals just one rate hike in 2019.
Gold is within a striking distance from the 200-day MA line of $1,252.
At press time, the yellow metal is changing hands at $1,250, having clocked a session high of $1,251 earlier today. Notably, the long-term MA hurdle was last put to test on June 14. Back then, the MA line was located at $1,306.
Focus on Fed
The US central bank is expected to hike rates by 25 basis points - a move priced in by investors - and sound cautious. More importantly, markets are pricing in just one rate hike for 2019.
The Fed, however, may sound less dovish-than-expected by removing just one rate hike from the September forecast of three rate hikes in 2019. In that case, the American dollar could pick up a strong bid, pushing the yellow metal lower.
The zero-yielding safe-haven metal could beat the 200-day MA line if the Fed matches market expectations by signaling just one rate hike in 2019. Also, gold may rise sharply if the forward guidance drops hints of a rate pause in 2019.
Gold Technical Levels
XAU/USD
Overview:
Today Last Price: 1249.9
Today Daily change: 70 pips
Today Daily change %: 0.0560%
Today Daily Open: 1249.2
Trends:
Previous Daily SMA20: 1234.1
Previous Daily SMA50: 1227.16
Previous Daily SMA100: 1214.43
Previous Daily SMA200: 1230.8
Levels:
Previous Daily High: 1250.3
Previous Daily Low: 1245.1
Previous Weekly High: 1250.85
Previous Weekly Low: 1233
Previous Monthly High: 1237.4
Previous Monthly Low: 1196.4
Previous Daily Fibonacci 38.2%: 1248.31
Previous Daily Fibonacci 61.8%: 1247.09
Previous Daily Pivot Point S1: 1246.1
Previous Daily Pivot Point S2: 1243
Previous Daily Pivot Point S3: 1240.9
Previous Daily Pivot Point R1: 1251.3
Previous Daily Pivot Point R2: 1253.4
Previous Daily Pivot Point R3: 1256.5
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