Gold Price Analysis — September 17


Gold (XAU/USD) etched lower through the early European session on Thursday and was last spotted trading under the $1947 resistance.

Traders appeared to be disappointed with yesterday’s Federal Reserve policy statement, which showed that the bank remained committed to keeping interest rates lower for longer to help bolster inflation. With the absence of any quantitative easing, gold traders feel less incentivized to place any aggressive bullish bets.

Gold bears have now been emboldened even further, considering that the US dollar (DXY) is beginning to rally even though Fed Chair Jerome Powell announced that the bank will be keeping its interest rates close to zero until inflation rises above 2% at a minimum.

The recent growth of the greenback can be largely attributed to the steady recoveries in major financial markets like China and the US, as recent data shows that the world powers are fast-tracking their economic recovery significantly.

Meanwhile, gold continues to be supported by the growing worries over the Coronavirus pandemic as the total global cases approach 30 million. This, coupled with the grim outlook for a sharp economic recovery in the near-term (particularly in emerging markets), could help gold facilitate a bounce back to the $2000 level.

XAUUSD – 4-Hour Chart

Gold (XAU) Value Forecast — September 17

XAU/USD Major Bias: Sideways

Supply Levels: $1950, $1960, and $1983

Demand Levels: $1940, $1923, and $1909

Following the FOMC meeting yesterday, gold has, once again, gone below our ascending trendline, indicating renewed weakness. Before the meeting, the XAU/USD showed a strong inclination for maintaining a bullish momentum for the time being.

Gold is now battling with the $1940 support, at press time, as staying above that level could help the commodity in reclaiming a bullish stance. Meanwhile, a break below that level could send the precious metal to the $1923 support and lower.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.