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XAUUSD : Rises Ahead of FOMC Meeting Minutes, Gains Still Capped

XAUUSD : Daily Chart

Gold again bounced off from the key support area around 1200 and currently trying to break above the resistance at 1214.59 as seen on the daily chart. Seems like investors have now again turned their attention towards the FOMC meeting minutes which will give guidance about the economy and the future monetary policy actions. We might see some gains today in Gold if Fed delivers any dovish statement about the economy however the gains will be capped as there is a falling resistance trend line which will prevent the pair in rising further. The moving averages pattern is such that the 100 day SMA is above the 50 day SMA and 200 day SMA is above the 100 day SMA and all are heading downward signaling a downtrend continuation. Most probably Fed will show a hawkish view on the economy as that data suggests recovery.

XAUUSD : 4 Hour Chart

On the 4 hour chart, the pair seems consolidating within an ascending triangle with support from a rising support trend line and resistance at 1221.14. On the stochastic oscillator the commodity is in the overbought zone and thus may decline breaking below the rising support trend line reversing the short term uptrend. If it rises breaking above the resistance at 1221.14, it can find resistance at any of the resistance level shown in the chart.