Fears of the Fed open the door to an increase in yields, adverse for gold
“The Death Cross is when the 50-day SMA crosses the 200-day SMA to the downside. They are about to ‘kiss’ and then cross at around $1,805.
The move seems inevitable and it will likely be followed by a downfall. Where to? All the way to $1,752. On the way down, there are plenty of support lines, including $1,829, $1,823, $1,810, $1,805, $1,800, $1,790, $1,785 and $1,762.”
“Bulls would be emboldened if XAU/USD recaptures $1,844 and more importantly $1,850. That would open the door to $1,865 and $1,900.”
“The next significant event to watch is the Federal Reserve’s decision on January 26. If the bank signals an imminent rate hike in March and potentially bond-selling later this year, yields would jump and gold could suffer. Conversely, if Fed Chair Jerome Powell and his colleagues send a soothing message of ongoing support to the economy, XAU/USD could avoid the kiss of the Death Cross.”