Gold’s rally halted after hitting 1809.80 earlier in the week, but failed to sustain above 1800 handle and turned into consolidations. Dollar’s recovery is capping Gold’s strength. Traders in the currency markets are generally cautious ahead of next week’s FOMC rate decision, and more importantly, the new dot plot.
Technically, Gold is feeling some support from 4 hour 55 EMA, which is a positive sign. Break of 1809.80 will resume the rise from 1616.51 to 61.8% projection of 1616.51 to 1786.83 from 1728.48 at 1833.73. However, sustained trading below 4 hour 55 EMA (now at 1772.44) will at least bring deeper fall back to 1728.48 support for a test.
