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Gold - The FED to weigh on gold price

We have been growing increasingly anxious about gold for the past several months. Indeed, we repeatedly reiterated our worries about the prospect of people selling their gold to cover losses elsewhere (especially in the case of the selloff in the stock market).

Currently, as the odds of this action continue to increase, we also continue to maintain a bearish view of gold (in the short-term and medium-term). Our beliefs are influenced by a combination of fundamental and technical factors, which will continue to weigh on XAUUSD in the foreseeable future. Accordingly, we await gold to drift lower after the FED's decision; in particular, we are looking for 1600 USD.

However, we are very optimistic about gold in the long run and think the impending selloff will provide excellent opportunities for acquiring gold (for long-term investment). Therefore, we will closely monitor the market and look for potential buying opportunities.

Illustration 1.01

Illustration 1.01 shows the daily chart of XAUUSD and simple support/resistance levels for it.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.