Gold price eases from monthly tops amid bets of earlier Fed rate hike. According to FXStreet’s Dhwani Mehta, XAU/USD’s additional upside hinges on a daily close above the 200-Daily Moving Average (DMA) at $1797.
Gold faces rejection at 200-DMA, will it manage to recapture it?
“Gold bulls now remain wary amid increasing calls for an earlier Fed rate hike. Traders look forward to a fresh batch of the US economic releases and Fedspeak for fresh trading opportunities in gold price while the Fed sentiment will continue to lead the way.”
“Going forward, any retracements will meet initial demand at the $1777 50-DMA resistance-turned-support, below which the 21-DMA at $1760 will come into play.”
“Daily closing above the critical resistance around $1796-$1799 is needed to unleash additional upside in gold price. That price zone is the confluence of the bearish 100 and 200-DMAs. The next relevant bullish target is envisioned near $1807-$1809, mid-September highs. If the latter gives way, then a fresh upswing towards the September highs of $1834 will be inevitable.”