GOLD XAUUSD Chart Technical Outlook set to endure more pressure ahead of the Fed, bears target $2,229
XAU/USD has failed to surpass the 4h-50 SMA and has found support at $2,320, which is followed by $2,292 and $2,268. Resistance is at $2,354, followed by $2,401. The broad trend is sideways, but the short-term one is down.
There are two factors weighing on Gold. First, worries about a potentially hawkish Fed stance in its decision tomorrow push yields higher, and that is bearish for Gold. The US Employment Cost Index (ECI) due out today could show that hiring is still costly, further justifying a hawkish stance.
Secondly, there are growing hopes for a ceasefire in the Middle East, and that makes Gold less attractive as a safe haven. Bulls need talks to break up and Israel to invade Rafah, seen as Hamas’ last redoubt in the south of the Gaza Strip. There is higher chance of a ceasefire than a wider war at this point.
