• Gold retraces from weekly highs, eyeing a test of the $1600 figure, following a hawkish Fed.
• XAU/USD hit a daily high at $1669 before erasing its gains.
• If XAU/USD clears the $1617.30 support, a re-test of $1600 is on the cards.

Gold price erased Tuesday’s gains following the release of the November monetary policy meeting of the Federal Reserve, which finished with the US central bank lifting rates by 75 bps to 3.75-4.00%, the highest level reached since 2008, at around the financial crisis. At the time of writing, XAU/USD is trading at $1635.16, down by 0.81%.

Gold Price Analysis: Technical outlook

After the Fed’s decision, the XAU/USD remains neutral-to-downward biased, aiming to break to fresh two-week lows below $1634. Of note, the 20-day Exponential Moving Average (EMA) was pierced as gold hit a fresh four-day high at $1669.52 before retreating to current price levels.

That said, a triple-bottom chart pattern is forming, which would be confirmed by the break of the last swing high, the October 4 daily high at $1729.48.

If that scenario is to play out., the XAU/USD needs to hurdle some key resistance levels in the daily chart. Firstly the 20-day EMA at $1656.26, followed by the 50-day EMA at $1678.25, and the 100-day EMA at $1723.82, ahead of the October monthly high.

On the other hand, if XAU/USD extends its losses, the first support will be the October 21 swing low at $1617.30. A breach of the latter will send XAU sliding towards March 2020 lows at around $1567.80, followed by the $1500 figure.

XAU/USD Key Technical Levels