Gold extends losses ahead of Fed meeting

By FXStreet FXStreet (Córdoba) – Gold prices retreated ahead of the Federal Reserve economic policy meeting, unable to recover ground despite broad dollar weakness.

Spot gold ended the day around $1,065.40 a troy ounce, a few cents below its daily low. The decline towards the five-year low established this December at $1,046.29, was once again attributed to fears that the US Federal Reserve will pull the trigger this week, and finally raise rates for the first time in almost a decade.

Gold technical view

“Technically speaking, the daily chart maintains a neutral-to-bearish stance, given that the price is now below a mild bearish 20 SMA, but that the technical indicators show no clear directional strength around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the downward potential continues increasing as the price was contained by a bearish 20 SMA, while the technical indicators present bearish slopes below their mid-lines, in line with a new leg south.”

Support levels: 1,062.39 1,057.30 1,050.30. Resistance levels: 1,068.90 1,074 60 1,082.60.
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Source:: FX Street