Gold prices ended Tuesday’s session down $5.01 but remained within the trading range of the past four days as the majority of market participants opted to remain on the sidelines ahead of the Federal Reserve’s policy meeting, where the central bank is expected to hike interest rates. Gold prices are trading slightly higher during the Asian session but the key levels are still holding.
Before the market makes a meaningful move, prices will have to either break through the 1210/08 area (the 38.2% retracement of the bullish run from 1122.63 to 1263.84) or drop below the 1193/1 zone (the 50% retracement). Penetrating 1210/08 could provide the bulls extra fuel they need to reach the next barrier standing in the 1214/3 zone, where the bottom of the weekly cloud resides. Once beyond that, XAU/USD will be targeting 1220/18. Falling through 1193/1 suggests that the bears are getting ready to challenge 1183. If this support is broken, then the 1179/6 zone will be the next target.
