On Tuesday, gold price fell sharply, extending a three-day downtrend. As FXStreet’s Dhwani Mehta notes, March lows remain in sight near $1,900 ahead of the much-awaited outcome of the March Federal Reserve meeting.
Daily chart suggests more pain for XAU/USD
“The Fed is widely expected to hike the key rates by 25bps. Although the world’s most powerful central bank’s outlook on future rate hikes and balance sheet reduction will hold the key amid 40-year high inflation and ongoing Russia’s invasion of Ukraine.”
“The March lows of $1,901 remain on gold sellers’ radars. If that level is breached convincingly then a fresh decline towards the $1,880 demand area could be in the offing. Further south, the bullish 50-DMA at $1,870 could come to the buyers’ rescue.”
“Immediate resistance is seen at the mildly bullish 21-DMA of $1,936, above which bulls will look to recapture the $1,959 trendline support now resistance. The recovery could regain momentum above the latter, recalling bulls to take on the $2,000 mark once again.”