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18 Mar 2015
Hawkish Fed might lead Gold to drop towards $1100 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, views that XAU/USD might see a fresh sell off on a break below 1142.67 towards 1130, and a hawkish Fed might lead to the pair extend its losses to 1100 levels.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) extended beyond 5-DMA located at 1154.83 and reached daily highs at 1159.80, before ending Tuesday lower at 1149.75 levels. The pair failed to sustain at higher levels and fell below 1150 levels to a new four month low of 1142.77”
“The XAU/USD pair may extend its side trend as the XAU bulls may refrain to create fresh positions ahead of FOMC meeting. Also, a flattish daily RSI standing at 25.50 levels, indicates lack of fresh direction for the pair.”
“A break above that 5-DMA level, the pair may retest previous highs at 1159.80 levels. To the downside, a break below daily the trend line support of 1148.75, the pair may accelerate losses and test the next support at 1142.67 (March 17 Low) levels.”
“A fresh sell-off may trigger on a break below 1142.67, drowning the pair to 1130 levels. Moreover, a hawkish Fed statement may further drag to test 1100 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) extended beyond 5-DMA located at 1154.83 and reached daily highs at 1159.80, before ending Tuesday lower at 1149.75 levels. The pair failed to sustain at higher levels and fell below 1150 levels to a new four month low of 1142.77”
“The XAU/USD pair may extend its side trend as the XAU bulls may refrain to create fresh positions ahead of FOMC meeting. Also, a flattish daily RSI standing at 25.50 levels, indicates lack of fresh direction for the pair.”
“A break above that 5-DMA level, the pair may retest previous highs at 1159.80 levels. To the downside, a break below daily the trend line support of 1148.75, the pair may accelerate losses and test the next support at 1142.67 (March 17 Low) levels.”
“A fresh sell-off may trigger on a break below 1142.67, drowning the pair to 1130 levels. Moreover, a hawkish Fed statement may further drag to test 1100 levels.”