GOLD | $1950 Key Support Approaches Bears Eye Further Downside
XAUUSD PRICE FORECAST:- Gold Continues its Move Lower as the $1950 Area Comes into Focus.
- DXY Could Resume its Move Lower as Key Resistance Level Holds Firm.
Gold prices are down due to hawkish comments from Fed policymakers, dampening hopes that the Fed is finished. Market participants were hoping for a different tone from Fed Chair Powell at the central bank conference, but he did not address monetary policy. However, there is still a chance he may discuss it tomorrow.
US DOLLAR INDEX RECOVERY FACES KEY RESISTANCE
The Dollar Index is struggling at the 105.63 resistance level, hindering its recovery. Fed policymakers Kashkari and Bowman suggest further rate hikes due to a strong economy. Fed Chair Powell's comments on monetary policy tomorrow will be worth noting. The Michigan Consumer Sentiment preliminary numbers on Friday could also impact the US Dollar.
Based on the CME FedWatch tool, expectations for another rate hike by policymakers have not significantly changed. The market still predicts a 90% probability that rates will remain unchanged at the December meeting. It is unlikely that this will change based on the remaining events this week.
XAUUSD TECHNICAL OUTLOOKForm a technical perspective, Gold continued its decline toward the psychological $1950 level. A break below the $1950 opens the door for a return to $1900 but there will be some key support tests that will need to be navigated first.
The $1930 support are being the most prominent. It did appear as though we may have a golden cross pattern and that may still occur but we it would require a recovery first.
Key Levels to Keep an Eye On:
Resistance levels: 1968.55 - 1980.00 - 2000.00
Support levels: 1950.00 - 1930.00 - 1900.00
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