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A Look At Gold Before The Fed Rate Decision

Published 12/14/2016, 03:24 AM
Updated 07/09/2023, 06:32 AM
XAU/USD
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GC
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Let's review the daily chart of gold (below) just before the Fed announces its interest rate. 13 DMA has offered very good resistance so far and currently it sits just above 1371, so the first thing to watch for gold bulls is the sustained move and close above this DMA.

Good news for buyers is from MACD, it crossed over to support the bullish case for gold and RSI too is slowly coming out of the oversold area. Daily chart is favourable for risky buyers only right now. For revealing any type of confident buying, it needs more time.

Gold Daily Chart

Here is the 5 hr chart below. Gold is trading inside a descending channel and is looking ready to give a breakout of this channel. If gold could manage 5 hr trades above this channel or above 1171, then it will be ready to take out the challenge of 1182 and 1198 too. Everything is looking rosy from the indicators. Let's see if it takes a break or not. I am bullish right now with tight stops before Fed.
Gold 5 Hour Chart

Resistance: 1171/1182/1198
Support: 1156/1140/1132

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