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Gold recovers from lows, Fed decision eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Gold managed to close little changed on Tuesday, recovering from session amid weaker-than-expected US data as investors attention shifts to the Federal Reserve decision tomorrow.

    Gold ended the day around $1,165.50 a troy ounce after bouncing from the $1,1160 zone during the American session. However, the daily chart shows gold traded within Monday's range, unable to pick up pace as investors await the Fed verdict. Although expectations still favor a December rate hike, Fed’s wording will be closely watched.

    Gold technical view

    “Technically, the same chart shows that the price continued hovering around a bullish 20 SMA, whilst the technical indicators are aiming to bounce from their mid-lines, limiting the downside at the time being”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical picture has turned neutral given that the price remained confined to a tight range, and traded around a horizontal 20 SMA, while the technical indicators hover around their mid-lines. Gold prices will likely remain range bound until the FED meeting outcome, and further appreciations in the metal will depend on how dovish the wording is”.

    Bednarik locates next support levels at 1,160.90, 1,153.35 and 1,142.50, while she places resistances at 1,170.90, 1,179.30 and 1,191.60.
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