Gold has been fairly volatile in last week as investors see-sawed between risk-on and risk-off trades with a mixed dollar creating more uncertainty over the direction of the price. This week however started on a positive note with the metal gaining over $20 from the lows hit during last week. Another major event is the 2-day Fed meet this week where it decides whether to hike interest rate or not, there is very less to nil chance that the Fed will do anything as they are awaiting President Trump’s economic plan.
Gold is stuck in a range between $1180 on the lower side and $1220 on the higher side. A breakout will result in further move on either side as the price/chart is in an expansionary mode.
Technically gold has a resistance at $1200 (A) which has acted as a wall where the price hits and rebounds back, a conclusive move above it may be followed by more upmove towards a key resistance at $1208 (B). A breakout above this level may confirm price movement towards new highs of $1226 then possibly $1248 . Gold has rebounded from lows of $1179.5 where it had retraced almost 50% of its gains from the high. On contrary, gold has a support at $1196 and next around $1182-$1184 which is a extremely crucial point for the yellow metal.