Gold struggles near $4,220 resistance zone
Gold (XAU/USD) continues to trade in a volatile and indecisive manner, fluctuating within a $40 range around the $4,200 mark on Tuesday. Long wicks on the daily candles reflect market hesitation as investors await Wednesday’s Federal Reserve decision for clearer guidance on the near-term interest rate trajectory.
Markets have already priced in a 25 basis point rate cut, but attention is now focused on the Fed’s interest rate projections (Dot Plot) and the press conference by the President of the United States. The consensus suggests a hawkish tone following the rate cut, which has driven United States Treasury yields higher in recent days, supporting the US Dollar and weighing on precious metals.
Recent price action shows consolidation around the $4,200 level. Technical indicators remain mixed: the 4-hour Relative Strength Index (RSI) has recovered from negative territory and returned to the 50 level, while the Moving Average Convergence Divergence (MACD) remains below zero, indicating mild bearish momentum.
Immediate Resistance: $4,220 (Monday’s high)
Key Resistance: $4,265 (highs from December 1 and 5)
Immediate Support: $4,165 (December 2 low)
Next Support Levels: $4,140 (November 26–27 lows), $4,110 (November 25 low)
Double Top Target: $4,065
A break below $4,165 would confirm a double top at $4,265 and increase downside pressure toward $4,065. Conversely, a daily close above $4,220 could open the path toward retesting $4,265 and potentially $4,300.