Gold is having a difficult time attracting investors on Wednesday. Will the Fed rescue XAU/USD bulls? A dovish surprise could trigger a fresh upswing in the yellow metal, according to FXStreet’s Dhwani Mehta.

Hawkish Fed to knock off XAU/USD towards mid-$1700s

“A dovish surprise from the Fed could trigger a fresh upswing in gold price back towards $1800.”

“An outrightly hawkish Fed could help gold bears flex their muscles, knocking off the price towards mid-$1700s.”

“Gold price is testing the crucial support at $1780. A sustained move below the latter could bring the rising trendline support at $1777 in play. A daily closing below that level is needed to validate the triangle breakdown, which will open floors towards the October lows of $1746.”

“XAU/USD could rebound towards the horizontal 200-DMA at $1791 on recapturing the 100-DMA hurdle at $1786. The extended recovery will call for a test of the $1800 mark, above which the triangle resistance at $1807 will be challenged.”