The precious metal initially rose on an intraday basis to 1452.82, marking a new six-year high. However, the precious metal gave up the gains rather quickly, easing back to the recently breached resistance area. The declines came as investors tried to read the signals ahead of the FOMC meeting due in a week’s time.
Will XAUUSD Reverse Losses?
The XAUUSD reached the upside target of 1450 rather quickly. The reversal was also swift as gold prices settled below the key resistance area of 1431–1428 levels. The last session on Friday closed with a doji. A rebound off this support level could signal whether gold has further upside. Failure to post gains above the resistance area could signal a possible move lower.