Gold falls further on Fed’s hawkish rhetoric
Gold is on track for the weekly fall of around 2%, confirming bearish stance on Fed’s hawkish shift towards more rate hikes that lifted dollar.
The yellow metal’s price fell to the lowest level since late December on Friday, after US policymakers signaled that the central bank may return to aggressive stance on monetary policy which.
This suggests that Fed may opt for 50 basis points in next policy meetings, as inflation remains elevated, as the latest data showed rise of consumer prices above expectations.
Bears broke today through pivotal Fibo support at $1827 (38.2% retracement of $1614/$1959), looking for confirmation of negative signal on weekly close below this level that would open way for extension towards targets at $1800/$1787 (psychological / 50% retracement).
Falling daily Tenkan-sen ($1854) should cap potential upticks and keep bears intact.
Res: 1837; 1845; 1854; 1859
Sup: 1818; 1800; 1787; 1776