Gold price is finding its feet after a volatile trading post-Federal Reserve event. For how long can XAUUSD hold $1,630 support? FXStreet’s Dhwani Mehta analyzes the outlook of the yellow metal.

Bank of England rate hike decision to trigger fresh volatility

“Daily closing below the $1,630 demand zone is needed to reinforce the downtrend towards the $1,620 round number, below which the October low at $1,617 will be back in play.”

“On a surprisingly hawkish BoE announcement, the GBP/USD pair could rally, dragging the US currency down across the board. The renewed weakness in the US Dollar could aid the rebound in the XAUUSD price.”

“The bearish 21-Daily Moving Average (DMA) at $1,656 will again lure buyers on a sustained break above the $1,640 barrier and the psychological $1,650 level.”  

See – BoE Preview: Forecasts from 10 major banks, big rate hike in doubt