"Gold Struggles Below $2,000 Amid Fed Anticipation"
Gold initially surged above $2,000 in the early US trading session but failed to sustain the upward momentum. With the US Dollar outperforming its major counterparts ahead of the highly anticipated Fed policy announcements on Wednesday, XAU/USD retreated to $1,990. The metal traded close to its weekly low of $1,986.61 on the second consecutive day of declines. The downward adjustment seems to have found a balance on the daily chart, with technical indicators retreating from extreme overbought levels. Meanwhile, the precious metal continues to trade above all its moving averages, with the 20-day Simple Moving Average (SMA) flattening near $1,920, surpassing the nearly flat 100-day SMA.
On the 4-hour chart, technical indicators show a downward bias, almost flatlining just above their midpoints, indicating a potential extended downtrend without confirming it. XAU/USD is struggling with the slightly rising 20-period SMA, while longer moving averages maintain their shallow upward slopes, significantly below the current price level. The risk of a sharper decline will increase if the price breaks below $1,976.83, the daily low from October 27.
Support Levels: $1,976.85, $1,962.10, $1,947.55
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
On the 4-hour chart, technical indicators show a downward bias, almost flatlining just above their midpoints, indicating a potential extended downtrend without confirming it. XAU/USD is struggling with the slightly rising 20-period SMA, while longer moving averages maintain their shallow upward slopes, significantly below the current price level. The risk of a sharper decline will increase if the price breaks below $1,976.83, the daily low from October 27.
Support Levels: $1,976.85, $1,962.10, $1,947.55
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
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