FX.co ★ Gold Remains Under Pressure Post SNB

The price of gold crashed after the FOMC announcement. It has dropped as low as 1,924 today, where it has found demand again. It has tried to rebound, but the downside pressure remains high. The USD further appreciation versus its rivals should push the XAU/USD toward new lows.

Fundamentally, the Swiss National Bank decided to keep the SNB Policy Rate at 1.75% even if the traders expected a 25 bps hike. Later, the BOE is expected to deliver a 25 bps hike, but it remains to see how the yellow metal reacts. Also, the US is to release important economic data as well. So, positive economic figures could lift the greenback and could punish the price of gold.

XAU/USD trading in the red

Technically, the XAU/USD found temporary support on the lower median line (lml). It has tried to rebound, but the buyers seem exhausted already.

The former low of 1,924 stands as a downside obstacle, while the 1,930 immediate high represents a static resistance. Closing and stabilizing below the lower median line (lml) may announce more declines.

XAU/USD forecast

A bearish closure below 1,924 activates more declines and is seen as a bearish signal.