Gold Price Holds Key Support, FOMC Next
- Gold price is stable above the $1,785 and $1,780 support levels.
- It is facing a major resistance near $1,820 on the 4-hours chart.
- EUR/USD trimmed gains after it failed to clear the 1.1380 zone.
- GBP/USD remains elevated above the 1.3450 support zone.
Gold Price Technical Analysis
This past week, gold was able to gain pace above the $1,805 level against the US Dollar. The price cleared the $1,818 and $1,820 resistance levels before it faced resistance.
The 4-hours chart of XAU/USD indicates that the price traded as high as $1,831 before a fresh decline. There was a move below the $1,815 and $1,810 levels.
However, the bulls were active above the $1,800 level and the 200 simple moving average (green, 4-hours). On the upside, the price is facing resistance near the $1,818 level.
The main resistance is near the $1,830 level. A clear break above $1,830 could send the price toward the $1,850 resistance zone in the near term. The next key resistance is near the $1,865 level.
On the downside, the price might remain supported near $1,800. The main support is near $1,785, below which there is a risk of a move towards $1,760.
Fundamentally, the US ISM Manufacturing Index for Dec 2021 was released yesterday by the Institute for Supply Management (ISM). The market was looking for a decline from 61.1 to 60.2.
The actual result was lower than the forecast, as the US ISM Manufacturing Index declined from 61.1 to 58.7. Besides, the ISM Manufacturing New Orders Index declined from 61.5 to 60.4.
Looking at EUR/USD, the pair failed to clear the 1.1380 resistance zone and started a fresh decline below 1.1320.
Economic Releases to Watch Today
- Germany’s Services PMI for Dec 2021 - Forecast 48.4, versus 48.4 previous.
- Euro Zone Services PMI for Dec 2021 – Forecast 53.3, versus 53.3 previous.
- US Services PMI for Dec 2021 – Forecast 57.5, versus 57.5 previous.
- US ADP Employment Change for Dec 2021 - Forecast 400K, versus 534K previous.
- FOMC Meeting Minutes.