Gold calm with bearish momentum

Amidst continuing bearish momentum Gold appears to have taken a brief pause at 1766 and oversold Stochastic reading of 15/19 shows minute stability in the wake of forthcoming rate decision by The US Federal Reserve.

While the bearish momentum can further put metal prices under pressure, we eagerly observe traders reactions to 1763

A break below 1763 should extend bearish moves to 1758 which is acceleration point to major support 1721 and long term static horizontal support base 1675 and 1668

On the flip side, failure to break and sustain below 1763 can start some recovery from the lows reaching 1780-1793 which is a major confluence zone for 50 EMA and 100 SMA on weekly chart.

Any further up move will require Gold bulls to win over this zone of 1793-1795 with adequate volume support that would mean strong buying rather than a spike of short covering and stops being triggered.

Stochastic reading of 15/26 on weekly chart indicates possible further decline in Gold price to 1721