Gold prices consolidated in the $1,900-$1,940 range. Economists at ANZ Bank analyze XAU/USD’s technical outlook.

In a neutral zone

To break the current downward trend, prices need to move above the recent high of $1,940, which coincides with the trendline resistance level. The next resistance lies near $2,000 and a decisive rally above that would confirm a bullish signal. The Relative Strength Index (RSI) looks neutral as well.

On the downside, a breach of $1,900 could set a bearish market sentiment.

Overall, we expect Gold to trade in the range of $1,900-$1,950, if there are no surprises from the Fed.