Gold has been bearish since March although it was holding above the previous support zone around $1,680. That support zone was broken eventually last week as the sentiment for the US improved following the economic data, while Gold turned lower as the risk sentiment turned negative.

Asa result, XAU/USD fell to $1,454, but has been bouncing higher this week, trying to make a bullish reversal after reaching the lowest levels in six months. Although, besides the FED worries as they get ready to deliver a 75 bps rate hike this evening, markets were given a push on news that Russian President Vladimir Putin’s is calling for a partial mobilization. which re-ignited some safe-haven interest in the Gold bullion, although a strong dollar and expected U.S. rate hikes have capped gains.

Gold H4 Chart – There’s A New Resistance at $1,678

The lows are getting higher though

But gold’s gains were kept in check as investors also sought refuge in the dollar, which scaled a fresh two-decade high versus a basket of other currencies, making bullion more expensive for overseas buyers. The focus still remains on the Fed’s policy decision due at 1800 GMT, with traders pricing in an 81% chance of another 75 basis-point rate hike and a 19% probability of a 100 bps increase.

We have been selling Gold in recent weeks since the pressure has been to the downside, with most Gold signals closing in profit as sellers kept the pressure. Today we decided to open another sell Gold signal after the retrace higher on the Russian news, after witnessing selling pressure up here.

Gold Live Chart