Gold price is building onto the previous rebound, although remains well below the critical resistance at $1,790, a tough nut to crack for XAU/USD bulls. Attention now turns towards the monetary policy announcements from the Bank of England (BoE) and European Central Bank (ECB) for fresh trading direction in gold, FXStreet’s Dhwani Mehta reports.
“The BoE is expected to hold back a rate hike, in the face of the looming Omicron threat to the economy. Meanwhile, the ECB is seen boosting its regular asset purchase program (APP), which could likely be their way of replacing its Pandemic Emergency Purchase Program (PEPP). These are the final policy decisions of this year, which will set the tone for markets, dollar valuations and gold in the coming year.”
“Despite Wednesday’s turnaround, gold could likely keep its bearish potential intact while it remains below a dense cluster of healthy resistance levels at $1,790. That level is the confluence of the downward-sloping 21-Daily Moving Average (DMA) and horizontal 100-DMA.”
“Acceptance above $1,790 will expose the next stop for bulls around $1,796, the confluence of the 50 and 200-DMAs. Further up, the $1,800 mark could be retested.”
“On the downside, the November lows of $1,759 remain on the sellers’ radars, below which the two-month lows could be back in play.”
See – Gold Price Forecast: XAU/USD unlikely to have a good 2022 – Deutsche Bank
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