The American dollar – gold's biggest nemesis – is no the defensive, courtesy of Powell's dovish comments. Still, gold is struggling to beat the resistance if the trendline connecting the Oct. 26 and Nov. 7 highs.
Gold is currently trading at $1,222, having clocked a high of $1,227 in the overnight trade.
Fed Chair Powell, at 17:00 GMT yesterday, said the interest rates are "just below" the level where they won't stimulate the economy (neutral level), squashing bets of an extended policy tightening period.
As a result, the US dollar exchange rate, as represented by the dollar index, fell almost 100 pips to 96.69. The losses in the greenback put a bid under the zero-yielding yellow metal.
So far, however, the metal has not been able to beat the falling trendline resistance, currently at $1,222. A daily close above that level would signal a continuation of the rally from the Nov. 13 low of $1,196.
The prospects of a bullish break above the trendline hurdle look strong, as the dollar index created a bearish outside-day candle yesterday, implying a bullish-to-bearish trend change.
Gold Technical Levels
XAU/USD
Overview: Today Last Price: 1222.73 Today Daily change: 2.4e+2 pips Today Daily change %: 0.196% Today Daily Open: 1220.34Trends: Previous Daily SMA20: 1217.55 Previous Daily SMA50: 1219.33 Previous Daily SMA100: 1207.94 Previous Daily SMA200: 1235.46Levels: Previous Daily High: 1231.8 Previous Daily Low: 1211.2 Previous Weekly High: 1230.3 Previous Weekly Low: 1217.7 Previous Monthly High: 1243.43 Previous Monthly Low: 1182.54 Previous Daily Fibonacci 38.2%: 1223.93 Previous Daily Fibonacci 61.8%: 1219.07 Previous Daily Pivot Point S1: 1210.42 Previous Daily Pivot Point S2: 1200.51 Previous Daily Pivot Point S3: 1189.82 Previous Daily Pivot Point R1: 1231.02 Previous Daily Pivot Point R2: 1241.71 Previous Daily Pivot Point R3: 1251.62
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