Gold (XAU/USD) rebounded on Monday after finding support just under $1770. Range play is likely to extend below $1800 as the focus shifts to the Federal Reserve decision on Wednesday, FXStreet’s Dhwani Mehta reports.
Recapturing 21-SMA on the 4H chart to recall the XAU buyers
“The worsening covid situation in the emerging economies and a likely tax hike by Biden continue to put fresh bids under the greenback.”
“Investors would refrain from placing any directional bet ahead of Wednesday’s Fed outcome, which could leave the price of gold in a familiar range.”
“Traders will take cues from the US CB Consumer Confidence data and sentiment on Wall Street amid upcoming corporate earnings results.”
“The XAU bulls struggle to find acceptance above the 21-simple moving average (SMA) at $1782 while the downside remains cushioned by the upward-sloping 50-SMA at $1778. The range is getting tighter, implying that a breakout in either direction could be on the cards.”
“A sustained break above 21-SMA could fuel a rally towards Friday’s high of $1796, above which the $1800 mark could be probed. Alternatively, a four-hour candlestick closing below 50-SMA is likely to expose Monday’s low of $1768.”
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