Gold Price Softens Ahead of a Busy Week with Fed, BoE, SNB and BoJ Meetings

[MongiIG]

GOLD, XAU/USD, US DOLLAR, CHINA, FED, BOE, SNB, BOJ, CRUDE OIL - TALKING POINTS

• Gold remains vulnerable to an evolving higher interest rate environment
• APAC equities are mostly lower after an underwhelming Wall Street lead
• All eyes on central banks this week. What do hikes mean for XAU/USD?

Gold slipped again today as the US Dollar found some traction with Treasury yields maintain lofty levels going into busy week for central banks. The non-yielding precious metal is below us$ 1,670 at the time of going to print.

 

GOLD TECHNICAL ANALYSIS

Gold traded at its lowest level since the pandemic began on Friday as it remains ensconced in descending trend channel.

1602 may provide support as it is the 161.8% Fibonacci Extension of the late July-August rally from 1681 to 1808.

Resistance might be at the break points of 1681 and 1689 ahead of the previous highs of 1735 and 1766.

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com