Gold price is edging lower near $1,750, snapping a three-day recovery. Hawkish Powell could revive XAU/USD downtrend towards $1,729, FXStreet’s Dhwani Mehta reports.

XAU/USD faces a wall of strong resistance levels heading into Powell’s speech

“Investors remain unnerved ahead of Fed Chair Jerome Powell’s speech at 1400 GMT on Friday. Powell could spill out hawkish beans on the size of the Fed’s rate hike move. Fed President is also expected to dampen speculation of lowering rates next year, as risks to growth mount.”

“Bulls could find immediate cushion around the previous day’s low of $1,750, below which the 50% Fibo level at $1,744 will be challenged. Selling pressure could intensify below the latter, opening floors towards $1,729, which is the golden ratio – 61.8% Fibo level.”

“Daily closing above monthly lows of $1,728 is needed to extend the uptrend.”

“Gold failed to sustain above $1,760, the 38.2% Fibonacci Retracement (Fibo) level of the recovery from yearly lows of $1,681 to the August 10 high of $1,80. The next powerful upside barrier is aligned around $1,769, where the 21 and 50-Daily Moving Averages (DMA) hang around. Acceptance above that supply zone will call for a test of the 23.6% Fibo resistance of the same ascent at $1,778.”