Gold Stays Quiet After Fed Meeting and Tech Earnings; How Long Will It Last?

Despite the anticipation entering this week, gold appears to require more than a Federal Reserve meeting and major technology earnings to stir. The question remains: if those events cannot spark movement, what can?

The Federal Reserve meeting proved largely uneventful, offering little to the broader markets. At the same time, major tech earnings produced mixed results, with tech shares declining in after-hours trading, reviving concerns about AI spending. Meanwhile, the bond market also remained quiet, with 10-year Treasury yields hovering near 5%. Consequently, gold has found scant reason to move, despite the Fed decision now past and renewed worries over AI expenditure.

The key risk events overnight were uninspiring, and a near-term tussle is beginning to form for gold.

Entering the later part of the week, gold is displaying a notable bounce between its key hourly moving averages.

The 100-hour moving average near $4,026 is providing some near-term support after being tested multiple times since Wednesday. On the other hand, the 200-hour moving average near $4,075 is capping any significant recovery. Buyers made an attempt following the Fed meeting but were quickly rejected.

Although a near-term battle is underway, the daily perspective remains less encouraging for gold buyers.

The decline that has persisted since August remains intact, with prices staying well beneath both daily moving averages. Last week's break below $4,100 has further strengthened the bearish momentum, and the $4,000 level has been tested recently.

Currently, the $4,000 mark is the crucial support level for gold. A decisive break below it could expose the June-to-July lows near $3,950-60, possibly leading to another downward move.

Conversely, buyers must first recapture the 200-hour moving average at $4,075 before targeting $4,100. Beyond that, the next significant resistance lies around $4,200-20, where the 100-day moving average is beginning to converge at $4,217.

None of this means a technical bounce is impossible, even if sellers remain largely in control. However, until buyers begin to retake the key resistance levels mentioned, they have more to demonstrate than the sellers. That sums up the current risk balance for gold.