Gold price remains in a pre-defined range between two key Fibonacci Retracement (Fibo) levels on the daily time frames. Therefore, XAU/USD looks to range between these key levels ahead of Fed, FXStreet’s Dhwani Mehta reports.

XAU/USD confined within two key barriers

“The $1,674 upside target continues to cap the bullish attempts. That level is the 50.0% Fibo level of the October decline from $1,730. Meanwhile, the downside remains cushioned by the 78.6% Fibo level of the same descent, which is at $1,640.”

“Gold traders await the Fed outcome for a sustained break from the ongoing range but risks to the downside seem compelling, as the 14-day Relative Strength Index (RSI) is trading listlessly while below the 50.00 level. This suggests that bears will likely retain control going forward.”

“On the upside, the immediate resistance is seen at the $1,650 psychological level, above which the 21-Daily Moving Average (DMA) at $1,667 could be challenged. Alternatively, the previous week’s low at $1,638 will be on sellers’ radars, below the 78.6% Fibo support. The monthly low of $1,617 will be the level to beat for XAU/USD bears.”