Gold Bulls at Risk Ahead of FOMC: Gold Price Technical Forecast

New YOrk (Jan 28)  Gold prices gapped-higher to start this week’s trade, moving along with the general theme of risk aversion that’s continued to show in global markets. The recent driver is the threat of Coronavirus spreading, with US equities starting to show a bit of fear last Friday and that continued through Monday trade. That Friday run of fear also brought another bullish breakout to Gold with price action pushing above the 1567 level of resistance.

But, at this point, S&P futures appear to have garnered some support around a bullish trendline projection and that fear bid may be ready to take a break if not a back-seat altogether. In Gold, prices have built in a quiet range after this week’s opening gap. And while that gap hasn’t yet been filled, there has been a bit of support coming from last week’s resistance, and a bit of scope provided by a Fibonacci retracement produced from the November-January bullish move. The 23.6% retracement helped to produce last week’s highs and currently shows as potential support. And the 14.4% retracement is helping to set this week’s high around the 1587 level.

FXstreet