The price of gold is trading in the red at 1,766.51 at the time of writing. The yellow metal is bearish as the Dollar Index extended its growth. XAU/USD remains under pressure after failing to activate an upwards movement.
As you already know, the fundamentals will drive the price later. The FOMC meeting is seen as a high-impact event that could bring high volatility and sharp movements. The Federal Reserve is expected to keep its Federal Funds Rate unchanged at 0.25% in the December meeting. Still, the FOMC Press Conference, FOMC Statement, and the FOMC Economic Projections could shake the markets and could bring sharp movements in both directions.
XAU/USD Range Pattern!
XAU/USD is traped between 1794.70 and 1761.94 levels. Only a valid breakout form this pattern will bring great trading opportunities and could offer us a clear direction. It drops within a down channel pattern. As long as it stays within this formation, XAU/USD could extend its sell-off.
1,761.94 and 1,758.89 are seen as critical support levels. A valid breakdown below these obstacles could open the door for a larger downside movement towards the channel's downside line. Only a false breakdown, a bullosh pattern on these downside obstacles could announce a new bullish momentum.
XAU/USD Outlook!
Its failure to reach the 1,794.70 static resistance signaled a potential drop towards 1761.94 support. As long as it stays under the downtrend line, the bias remains bearish, it could drop deeper. A hawkish FED could send Gold towards fresh new lows, while a dovish tone could boost XAU/USD.
Dropping, closing, and stabilizign below the 1758.89 could activate more declines. This could represent a selling opportunity as well.
