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Gold Price Targets Fresh Monthly High, Fed Decision Next

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Aayush Jindal

Key Highlights

  • Gold price is moving higher from the $1,900 support.
  • It could gain pace if it clears the $1,940 resistance on the 4-hour chart.
  • Crude oil prices rallied further and even spiked above $92.50 before correcting lower.
  • The Fed interest rate decision is scheduled today (forecast - no change from 5.5%).

Gold Price Technical Analysis

Gold price started a decent increase from the $1,900 zone against the US Dollar. The price gained pace above the $1,920 and $1,925 resistance levels.

The 4-hour chart of XAU/USD indicates that the price settled above the $1,925 level, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours).

The price cleared the 50% Fib retracement level of the downward move from the $1,952 swing high to the $1,901 low. It is now facing resistance near the $1,938 and $1,940 levels. The next major resistance is near the $1,950 level, above which Gold could revisit the key $1,965 resistance zone.

On the downside, the price might find support near the $1,925 level and the 100 Simple Moving Average (red, 4 hours). The next key support is near $1,920 and the 200 Simple Moving Average (green, 4 hours).

If the bulls fail to protect the $1,920 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,900 level.

Looking at crude oil prices, there was a sustained upward move, and the price even broke the $92.50 resistance zone.

Economic Releases to Watch Today

  • UK Consumer Price Index for August 2023 (YoY) – Forecast +7.1%, versus +6.8% previous.
  • UK Core Consumer Price Index for August 2023 (YoY) – Forecast +6.8%, versus +6.9% previous.
  • Fed Interest Rate Decision - Forecast 5.5%, versus 5.5% previous.
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