Gold snaps three-day uptrend, impending “Death Cross” keeps sellers hopeful
The US Federal Reserve’s (Fed) hawkish halt failed to impress the US Dollar buyers as softer inflation data raised doubts about the central bank’s one rate cut in 2024 projections. The same allowed the Gold price to refresh weekly high during its three-day uptrend by the end of Wednesday. However, failure to cross the key SMAs and a looming “Death Cross” of the 100-SMA and the 200-SMA joins the unimpressive RSI (14) and an impending bear cross on the MACD to challenge the precious metal buyers afterward. That said, the quote currently drops toward a 10-week-old rising support line, close to $2,288, a break of that will highlight the previous monthly low of $2,277 and the early April swing lows surrounding $2,266 as the seller’s favorite. It’s worth noting, however, that the XAUUSD’s sustained weakness past $2,266 will make it vulnerable to a slump toward the March 21 peak of $2,222.
Alternatively, Gold buyers need a clear upside break of the 100-SMA and 200-SMA convergence, close to $2,343-44 by the press time, to retake control. Even so, a three-week-old descending resistance line will test the XAUUSD bulls around $2,371. In a case where the precious metal remains firmer past $2,371, the monthly high of near $2,387 and the $2,400 threshold could challenge the upside momentum targeting a two-month-old horizontal resistance area surrounding $2,433-34.
Overall, Gold teases sellers after the top-tier catalysts but a clear break of $2,288 becomes necessary to expect the metal’s further downside.
