Gold price drops as the US dollar rises on a risk-off market profile. Wednesday’s Fed decision to provide the next decisive move in gold price. Where is gold price headed? Markets are eagerly looking forward to the Fed decision, as the two-day FOMC meeting kicks off on Tuesday. Ahead of the Fed verdict, the Omicron covid variant fears have gripped the market, putting a fresh bid under the safe-haven US dollar at gold’s expense. Meanwhile, the Treasury yields hold steady on expectations of faster Fed’s tapering and hint at a mid-2022 rate hike.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The Technical Confluences Detector shows that the gold price continues to run into strong offers at $1,790, which is the meeting point of the SMA100 one-day, Fibonacci 23.6% one-day and SMA100 four-hour.

A decisive break above the latter could unleash the additional recovery towards the next powerful resistance at $1,793. At that level, the SMA200 one-day coincides with the previous week’s high and pivot point one-week R1.

Gold bulls will then target $1,796, the confluence of the pivot point one-day R2 and SMA50 one-day.

A dense cluster of healthy resistance levels awaits at $1,804, the convergence of the Fibonacci 38.2% one-month, pivot point one-week R2 and pivot point one-day R3.

Alternatively, the selling momentum could accelerate below the pivot point one-day S1 at $1,781.

Gold bears will then challenge the downside target at $1,779, where the Fibonacci 38.2% one-week meets with the SMA10 one-day.

Further south, the intersection of the Fibonacci 161.8% and Fibonacci 23.6% one-week at $1,775.

The last line of defense for gold buyers is the previous week’s low of $1,770.

Only $1790 Can Open Doors to $1807 - $1820

Dec 14 2021

1