Article by: ETO Markets

Following the most recent Federal Reserve monetary policy decision, demand for the US dollar remained muted despite lower government bond yields. The Federal Reserve's decision to hold off on raising interest rates for a third straight meeting effectively signaled the end of monetary tightening.

Any further increase in gold prices is likely to run against strong resistance in the $… supply zone. If this resistance is overcome, gold prices may try to retest the swing high from last week, which is located in the $… range. A small amount of follow-through purchasing will be welcomed by bullish traders as a new catalyst and open the door for a move towards the next significant barrier, which is located in the $… area.

Conversely, the horizontal resistance breakpoint around $… may hold off further declines before the psychological $… barrier. The 50-DMA support, which is presently located near $…, will be sensitive to challenge if the price of gold makes a strong break below the latter.