Gold channel remains key
Yesterday’s rally in gold was short-lived, with volatility surrounding the FOMC announcement bringing price back up to the channel top before selling off once more. Thus, price remains within this pattern and is expected to return to the bottom of the range before long.
Price is currently being held up by the 50-hour simple moving average (SMA) and this consolidation is expected to give way to further losses, which would be signaled by a closed hourly candle below $1066.
Support levels of note are $1062 and $1058, whereas resistance levels are at $1067 and $1070.