Gold is below moving averages of 100 and 200 hours
Buyers went for a break on Friday while the stops were exceeded just above the US $ 1,350 level, but that quickly turned because the dollar is maintained thanks to better data later in trade US. As this week begins, the focus is on the Fed. Wednesday's FOMC meeting aims to provide the markets with a better indication of what to expect with respect to the interest rate outlook and risky business bias this week.
There are some optimistic signs of optimism in the early deals, but it is rapidly fading with European stocks now close to stable levels and US futures are not progressing than 0.1%. That said, gold is even weaker against profit taking before we tackle the key risk event later in the week.
Regarding the technical details, the price starts to slide below the MA (blue line) of the 200 hours, which would indicate that sellers are regaining control. If sellers pause here, they will set a more bearish bias in the near term in the upcoming session.
Additional support is around $ 1,330 before the retracement level of $ 38.2 to $ 1,326.47 comes into play. In the end, market players take a break for the moment after rising since the end of May. I still think that gold has a lot more potential if the Fed decides to become more dovish this year.
But if it will happen or not at this week's meeting, we'll have to see. Otherwise, if the Fed sends a more confident pause / neutrality signal, we could see a new gold retracement, as we would again focus on global trade tensions to see how this would force the Fed to play in the coming months.