Both ECB and the FED meetings are over with a 25 basis points hike. Despite the rate increases, both banks are near or at the end of the hiking cycle. The US’s strong GDP and rising dollar index, driven by a dovish ECB and lower-than-expected claims for the second week in a row, however, hit gold yesterday from the key resistance.

Excluding the fundamental side, the gold price has been moving sideways since May, below the 1985 resistance. It has rejected advances seven times since then. The final rejection occurred yesterday as gold broke the 1965 level and approached the 1937 support, driven by the dollar index gaining value The 1937 level will be crucial for short-term moves. If it breaks too, 1900 could be the next target.

Looking from a different perspective, as long as the 1900 and 1985 levels hold, gold can be expected to fluctuate between them, using sub-levels of 1937 and 1965 as support and resistance along the way.