Article by: ETO Markets

The Federal Reserve's hawkish comments and mounting rumours that the Fed may postpone its easing plans have strengthened the greenback and depreciated gold priced in USD. In the short run, precious metals are expected to be supported by indications of economic weakness and persistent geopolitical tensions in the Middle East.

The price of $… will be the first upside hurdle for XAU/USD, which will lead to the psychological $… level. A clean break above this level may pave the way for a rally to the next significant resistance level, which is located close to the all-time high at $ ...

The 100-SMA on the 4-hour chart and the resistance-turned-support level are converging at $… to become the main support level on the downside. The next concern level is situated around $...