Stay 
Trading Conditions
Products
Tools
Early in the American session, gold is trading around 1,761.72. We can see on the 4-hour chart that it is testing strong resistance around 1,765. If XAU/USD fails to break it, there could be a technical correction towards the 21 SMA located at 1,752 in order to resume the bullish cycle.
The market outlook indicates a consensus for a 0.50% rise in the US interest rate, which is scheduled for the next meeting of the Federal Open Market Committee (FOMC) on December 13-14.
This data could keep gold under a consolidation zone between 1,789 and 1,718 for the next few days. Negative economic data for the US dollar could favor Gold and the metal could reach the area of 1,812. Positive data on the US economy and an increase in the yield of Treasury bonds could push gold towards the 200 EMA located at 1,718 and the price could even fall towards the area of 1,620 which represents November's low.
On the other hand, we can see that gold is showing signs of a possible upward movement on the 4-hour chart. So, we should wait for a confirmation above 1,765 to buy with targets at 1,781 and 1,812.
As long as gold trades around the area of $1,765, the metal has the potential to raise the price to the area of 1,775 -1,780. The next major hurdle is the 1,781 (+1/8 Murray) zone, the highest level since mid-August reached earlier this month. If settled above it, XAU/USD could try to reach the psychological level of 1,800 and even +2/8 Murray (1,812).
In case gold falls below the symmetrical triangle, we could expect a sharp break below 1,748. Then, gold could quickly fall towards the 7/8 Murray area which coincides with the 200 EMA which will be a sign to sell.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
