Article by: ETO Markets

The price of gold is still struggling to generate any significant momentum on Wednesday and is stuck in a trading range that has been there for several days. Growing consensus that the Federal Reserve would hold off on decreasing interest rates until the June policy meeting has helped the US Dollar regain positive momentum. This is regarded to be a headwind for the non-yielding yellow metal. In addition, the strong underlying bullish mood surrounding the world equities markets turns out to be another factor limiting the safe-haven commodity's potential. 

The two-week high that was achieved last Thursday, or near $ …, may continue to serve as an immediate barrier and limit advances for the gold price. Nevertheless, a sustained increase above this level will validate a breach of the 50-DMA barrier and open the door to further advances. The XAU/USD pair may then rise to the next significant barrier close to the $… since oscillators on the daily chart have just recently begun to show upward traction. 

However, the weekly low, which is currently located around $…, appears to be blocking the short-term decline before the 100-DMA, which is presently located around $… and the psychological $… barrier.