Article by: ETO Markets

The rising geopolitical tensions between the West and the Iran-backed Houthi rebels did help the gold price a little bit, but in the later part of the day, the expectations surrounding the Fed outweighed the news that the US ISM Services PMI for January came in stronger at 53.4 due to an increase in new orders and a rebound in employment.

Technically speaking, some follow-through selling below $… could reveal the psychological $… barrier. A strong break below the latter will be interpreted by bearish traders as a new catalyst, pushing the price of gold down to the 100-DMA support, which is now located near $….

Conversely, momentum above the 50-DMA, which is about $…, is probably going to run into resistance around near $… zone, which is ahead of the $… region, or the swing high from last week. The daily chart's oscillators are only staying in the positive zone, but some follow-through buying might push the price of gold up to $…, or the January peak.