Spot Gold bounced on Wednesday, driven by weaker dollar, after four-day pullback from $1366 found footstep at $1334 (Fibo 76.4% of $1324/$1366 upleg). Near-term bears are taking a breather and awaiting the outcome of Fed’s policy meeting, due later today, looking for signals of next steps of the US central bank in the near future. Fed chair Janet Yellen is leading her last policy meeting as head of the central bank before transferring the chairmanship to her successor Jerome Powell. Gold’s overall picture remains bullish and keeps focus at the upside with recent pullback seen as positioning for fresh upside action. Close above 10 SMA is needed to generate fresh bullish signal and confirm that probes below were minor threat to underlying bulls. Extension above $1346 (Fibo 38.2% of $1366/$1334 pullback) will be next bullish signal with confirmation of reversal seen on extension above $1353 (Fibo 61.8%). Bearish scenario sees increased risk for retesting $1324 pivot (18 Jan trough) on loss of $1334 handle.
Res: 1346, 1350, 1353, 1357
Sup: 1340, 1334, 1331, 1328
. Near-term bears are taking a breather and awaiting the outcome of Fed’s policy meeting, due later today, looking for signals of next steps of the US central bank in the near future. Fed chair Janet Yellen is leading her last policy meeting as head of the central bank before transferring the chairmanship to her successor Jerome Powell. Gold’s overall picture remains bullish and keeps focus at the upside with recent pullback seen as positioning for fresh upside action. Close above 10 SMA is needed to generate fresh bullish signal and confirm that probes below were minor threat to underlying bulls. Extension above $1346 (Fibo 38.2% of $1366/$1334 pullback) will be next bullish signal with confirmation of reversal seen on extension above $1353 (Fibo 61.8%). Bearish scenario sees increased risk for retesting $1324 pivot (18 Jan trough) on loss of $1334 handle.){kind=link}