Tonight we will learn the highly anticipated FOMC decision on the level of interest rates in the US. Let's check how the technical situation on gold looks before this event.
Looking at the D1 chart, GOLD quotes have been moving in an uptrend for a long time. However, the course recorded a dynamic downward correction in early November, which reached the area of the average of the last 100 periods, After the defense of the aforementioned average, another upward wave was generated. However, buyers failed to establish a new peak, which may encourage market bears to be more active. The appearance on the chart of something like a double peak at the level of $2719, may suggest a desire to make a deeper correction. Nevertheless, for the time being, one should be particularly cautious about rallying a trend change. It seems that only the negation of the EMA 100 average - the green line on the chart - could be a pretext for larger declines. For now, despite the formation of a potential double top formation - the main trend remains upward, and a breach of the $2719 level could generate another upward wave.
GOLD interval D1. Source: xStation5
As for the lower H1 time frame, we are seeing a local downward movement. The key short-term resistance is the level of $2658, a rebound from it could add to a test of the last low at $2618 Otherwise, in case of negation of the resistance at $2658, the upward movement may gain momentum. Then the base scenario will become a movement towards the last maximum at $2719.
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GOLD interval H1. Source: xStation5
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