Will gold rise again? The focus is on changes by the Fed
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In general, XAUUSD is still within a tight downward price channel from its all-time high of $2195. Since surpassing the support level at $2175, it has been leaning towards a correction. It is currently trading around $2156, with a drop of $7 from its pause at $2163.
This week, the price of Gold will be influenced by the Federal Reserve's interest rate decision, which will be announced on Wednesday. Many predict that the Fed will keep the interest rate unchanged between 5.25% - 5.50%. Therefore, the main focus will be on the interest rate guidance provided through what is called a dot plot, a quarterly updated chart showing interest rate forecasts from Fed officials in different time frames.
The volatility is still decreasing, and the price is not yet ready to adjust higher. On the 1-hour chart, XAUUSD is currently receiving strong support around the current support level of 2145-2150. Breaking below this level will lead to a significant price decline, while maintaining below this level will result in price increase. This setup indicates that the market is prepared and heading towards lower areas. It is expected that the price will continue to decline further in the future, a complete break of the 2145-2150 support level could become a local trend change, towards lower liquidity zones.
In general, XAUUSD is still within a tight downward price channel from its all-time high of $2195. Since surpassing the support level at $2175, it has been leaning towards a correction. It is currently trading around $2156, with a drop of $7 from its pause at $2163.
This week, the price of Gold will be influenced by the Federal Reserve's interest rate decision, which will be announced on Wednesday. Many predict that the Fed will keep the interest rate unchanged between 5.25% - 5.50%. Therefore, the main focus will be on the interest rate guidance provided through what is called a dot plot, a quarterly updated chart showing interest rate forecasts from Fed officials in different time frames.
The volatility is still decreasing, and the price is not yet ready to adjust higher. On the 1-hour chart, XAUUSD is currently receiving strong support around the current support level of 2145-2150. Breaking below this level will lead to a significant price decline, while maintaining below this level will result in price increase. This setup indicates that the market is prepared and heading towards lower areas. It is expected that the price will continue to decline further in the future, a complete break of the 2145-2150 support level could become a local trend change, towards lower liquidity zones.
Trade active:
SELL GOLD ZONE: 2159 - 2163
SL: 2165
TP1: 2157
TP2: 2155
SL: 2165
TP1: 2157
TP2: 2155
Trade active
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