Article by: ETO Markets

The price of gold falls slightly during the morning session, but it stays inside the same trading range that has been maintained for the previous week or so. The Federal Reserve is expected to maintain higher interest rates for an extended period of time, as supported by the US Personal Consumption Expenditures Price Index issued on Friday. This helps the US Dollar to regain its upward momentum. In addition, the precious metal that serves as a safe haven is hampered by a reduction in Middle East hostilities. 

Over the last two days, the price of gold has had difficulty breaking above the 200-HMA barrier. The current barrier sets around the $… , now lines up with the 38.2% Fibonacci retracement level of the most recent decline from the all-time high and ought to serve as an important turning point. The 50% Fibonacci level, which is located at $… is the next significant hurdle that the gold price might reach if it is cleared, which is close to the $...

Conversely, if there is some continuation of the selling and acceptance below the 100-HMA, the gold price may be susceptible to retesting the swing low from last week, which is located in the $… , with some intermediate support close to $...