Gold Price Outlook Steadies After a Test Lower that May Prove Pivotal. Higher XAU/USD?

Gold has tried lower but rallied off the floor after the US Dollar took a turn in the aftermath of rate decisions from the Federal Reserve and the European Central Bank this week. GC1 (GOLD FRONT FUTURES CONTRACT) TECHNICAL ANALYSIS Gold’s recent dip below an ascending trend line and subsequent test of support levels in the 1936 – 1945 area might ask more questions than it answers. Thursday’s low of 1936 has set up a potential Double Bottom that coincides with a previous low. The potential Double Bottom could be confirmed should it move above the neckline at 2000. The push lower went under the 100-day Simple Moving Average (SMA) but the daily close was back above it. This may suggest that recent bearishness could have been rejected by the market for now and that the 1936 – 1945 zone might remain supportive. A clean break below that area may see a bearish run evolve, and the next support zone of note could be at the next Double Bottom of 1811 and 1813.