Gold Price Prediction – Test Of Support At $1715

Key Insights

• Gold is trying to settle below the support at $1715 as strong dollar continues to put pressure on precious metals. 
• Trading remains choppy as traders are waiting for the Fed Interest Rate Decision. 
• A move below $1715 will push gold towards the support level at $1700.

Gold Is Mostly Flat As Lower Yields Are Offset By Stronger Dollar

Gold continues to trade near the $1720 level as traders remain cautious ahead of the Fed decision, which will be released tomorrow.

The yield of 10-year Treasuries has recently made an attempt to get below the strong support near 2.70%. Demand for U.S. government bonds increased after Walmart presented a disappointing quarterly report. Lower yields are bullish for gold that pays no interest.

Unfortunately for gold bulls, the rising demand for safe-haven assets has also provided material support to the U.S. dollar, which was bearish for gold.

It should be noted that gold has not served as a safe-haven asset in recent months as traders remained focused on rising interest rates and stronger dollar. Most likely, gold will need significant catalysts to be viewed as a safe-haven asset in the near term.

Gold Markets Are Calm As Traders Stay Cautious Ahead Of The Fed Decision

Gold is currently trying to settle below the support level at $1715. This support level has already been tested several times in recent trading sessions and proved its strength.

In case gold declines below this level, it will head towards the next support, which is located at $1700. A successful test of this level will open the way to the test of the support at $1680.

On the upside, the nearest resistance level is located at $1730. A move above this level will push gold towards the resistance area in the $1740 – $1750 range. In case gold manages to settle above this area, it will head towards the resistance at $1765.

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