Article by: ETO Markets

Because there are no significant economic data releases at the midweek point, the price of gold is trading favorably on Thursday. Nonetheless, a number of obstacles, like the strengthening US dollar and the hawkish remarks made by the US Federal Reserve, are probably going to limit the precious metal's upside in the near future.

The short-term outlook is ambiguous. locked at a flat 20-SMA on the 4-hour chart, XAU/USD is locked between a negative 100-SMA and a somewhat bullish 200-SMA. Technical indicators oscillated between their midlines with no discernible direction. A negative run will have to wait until the gold falls below the 38.2% retracement of the previous rally around $… , although bears may have greater prospects of a clear breach below the $… barrier.