Gold prices declined for the third consecutive day, setting a new weekly low on Wednesday. Safe-haven demand diminished, and the looming shadow of the Fed's hawkish stance continued to weigh on the precious metal. China's economic woes might provide support for the safe-haven asset ahead of the Fed's decision. Short-term technical outlook for Gold favors buyers, with a 'buy the dip' strategy in place ahead of the Fed's decision.
The 14-day Relative Strength Index (RSI) has retreated from overbought territory, suggesting potential room for further upside.
Adding support to the bullish view, the 21-day Simple Moving Average (SMA) and the Bull Cross of the 50-day SMA are active, with the 21-day SMA also crossing above the 100-day SMA to the upside.
Therefore, additional downside moves might find robust static support around $1,963, below which the psychological level of $1,950 cannot be ruled out.
On the flip side, if Gold buyers regain control, immediate resistance will be placed around the round figure of $1,990, above which the $2,000 level will be retested.
Acceptance above the multi-month high of $2,009 is crucial to restore the uptrend towards the May peak near $2,020.
The 14-day Relative Strength Index (RSI) has retreated from overbought territory, suggesting potential room for further upside.
Adding support to the bullish view, the 21-day Simple Moving Average (SMA) and the Bull Cross of the 50-day SMA are active, with the 21-day SMA also crossing above the 100-day SMA to the upside.
Therefore, additional downside moves might find robust static support around $1,963, below which the psychological level of $1,950 cannot be ruled out.
On the flip side, if Gold buyers regain control, immediate resistance will be placed around the round figure of $1,990, above which the $2,000 level will be retested.
Acceptance above the multi-month high of $2,009 is crucial to restore the uptrend towards the May peak near $2,020.
