XAU/USD overall outlook bearish – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, views the overall outlook for XAU/USD as bearish with USD strength might keep Gold soft ahead of the FOMC meeting.

Key Quotes

“Gold prices in terms of US dollar (XAU/USD) dropped for the second straight session and ended lower on Monday at 1279.94 levels.”

“On the daily chart, the pair has broken below the 10-DMA located at 1278.50 and remains exposed to further downside risk as risk-on sentiments re-emerged. The pair may fall further to 1267 levels if it breaches day’s low at 1271.97 levels. The daily RSI has also turned lower at 63.69 which is in sync with the lower gold prices in USD.”

“The XAU bulls may take total control if the pair fails to break daily lows and rebound to retest 5-DMA placed at 1288 levels.”

“Overall, the outlook for the day looks bearish as USD bulls are likely to be in-charge ahead of US Fed Policy Meeting on Wednesday.”

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