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What to Expect From Gold?

XAUUSD : 4 Hour Chart

Gold strengthened a little ahead of the Fed Chairwoman Janet Yellen speech. On the 4 hour chart, we can see that the commodity is following a falling channel trend and rose a little after finding support from the falling support trend line. The gains shall be limited as there is a resistance trend line which might prevent the commodity to move above it. The moving averages on the chart are also signaling that Gold might continue to decline. The 50 day SMA is contracting towards the 100 day SMA and might cross below it signaling a downtrend continuation.

XAUUSD : Daily Chart

On the daily chart, this falling channel trend can be clearly analysed. The losses also seems limited unless the commodity breaks below this channel trend.There is a support trend line which will prevent the pair to decline below it. However if it breaks below this trend line, this will signal a bearish trend on the pair. If not the commodity might rise again finding support from this trend line. Yellen's speech at 10 AM EDT will only prompt Gold to decline below this support trend line if her statement seems hawkish about the US economy otherwise it may rise.

XAUUSD : Weekly Chart

On the weekly chart, the commodity seems consolidating within triangle and might break down or break out from the support or resistance trend line respectively. Overall the trend seems bearish so If it breaks down it will again find support at 1208.73. So it seems like in long term the pair may decline to this level.