Gold remains bid, but stuck at key trendline hurdle
- Gold remains bid just below the post-Fed high.
- The ascending trendline is capping gains.
Gold (XAU/USD) is trading on the front foot in Asia just below the post-Fed high of $1347.58, but still below the resistance of accelerated trendline drawn from the Jan. 10 low and Jan. 22 low.
The Fed kept rates unchanged as expected and upgraded the inflation outlook. Consequently, the dollar index jumped to a high of 89.14, pushing the yellow metal lower to $1332.57. However, the greenback faded the spike, thus helping the safe haven yellow metal rise to $1347.58 - post-Fed high.
As of writing, the metal is changing hands at $1346.29. The S&P 500 futures are up 8 points. Meanwhile, the 10-year treasury yield has backed off slightly from the 3.5 year high of 2.75 percent but remains well above 2.7 percent. So, the American dollar could find fresh bids, thus the odds of the yellow metal may find it hard to cut through the trendline hurdle.
Gold Technical Levels
A break above $1347.58 (post-Fed high) would open up upside towards $1357 (Jan. 26 high) and $1366.08 (Jan.25 high). On the other hand, a move below $1344 (4-hour 50-MA) could yield a pullback to $1337.98 (4-hour 100-MA) and $1332.57 (post-Fed low).