GOLD PRICE OUTLOOK:
- Gold jumped to a 4-week high just beneath $1,900 after the December FOMC rate decision
- Nearby resistance rests near the $1,900 mark which, if broken, could open the door to a continuation higher
Gold remained depressed through the first half of the European session and was last trading near daily lows, around the $1,880 region. Gold (XAU/USD) is looking to resume its uptrend towards $1,900 following the overnight corrective pullback. No breakthrough on the stimulus package talks combined with post-Fed US dollar comeback knocked off the metal.
The bulls will then challenge the critical barrier at $1,890, where the Fibonacci 61.8% one-month coincides. Further up, the $1900 critical hurdle is the level to beat for the buyers.
In the event of renewed bearish, gold may have fresh support to work with. After breaching various zones of resistance, the levels might serve as support in the days ahead with a horizontal band around $1,850-$1,860 acting as the first area of barrier .
