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Gold Price Corrects Lower Ahead of FOMC Minutes

Aayush Jindal

Aayush Jindal

Key Highlights

  • Gold price started a downside correction from the $1,800 resistance zone.
  • It traded below a key bullish trend line with support at $1,792 on the 4-hours chart.
  • EUR/USD extended losses below 1.0200 before the bulls appeared.
  • GBP/USD tested the key 1.2000 support zone.

 

Gold Price Technical Analysis

Gold price gained pace above the $1,750 resistance zone against the US Dollar. The price was able to surpass the $1,760 and $1,780 resistance levels.

The 4-hours chart of XAU/USD indicates that the price even broke the $1,800 level. However, there were limited upsides above $1,800. The price traded as high as $1,807 before there was a downside correction.

There was a move below the $1,800 and $1,795 levels. The price traded below the 23.6% Fib retracement level of the upward move from the $1,680 swing low to $1,807 high.

Besides, it traded below a key bullish trend line with support at $1,792 on the same chart. On the downside, an initial support is near the $1,768 level and the 100 simple moving average (red, 4-hours).

The next major support is near the $1,755 level or the 200 simple moving average (green, 4-hours), below which the price could accelerate lower. In the stated case, the price may perhaps decline towards the $1,745 level.

On the upside, the price might face sellers near the $1,790 level. The next major resistance is near the $1,800 level. Any more gains might send the price towards the $1,825 level.

Looking at EUR/USD, the pair extended losses below the 1.0200 level and tested the 1.0120 support, where the bulls emerged.

Economic Releases to Watch Today

  • UK Consumer Price Index for July 2022 (YoY) – Forecast +9.8%, versus +9.4% previous.
  • UK Core Consumer Price Index for July 2022 (YoY) – Forecast +5.9%, versus +5.8% previous.
  • Euro Zone Gross Domestic Product Q2 2022 (Preliminary) (QoQ) - Forecast 0.7%, versus 0.7% previous.
  • FOMC Meeting Minutes.