The gold price fell further in the Asian session after breaching the critical support level of $1,830.00. Earlier, the precious metal was gradually declining as investors remained on the sidelines ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony. A decisive move below $1,830.00 has pumped adrenaline into gold bears, potentially dragging gold prices significantly lower.
Investors hope Fed Powell will take an extremely hawkish stance on monetary policy in July. The Fed has raised interest rates to 1.50-1.75 percent in the last four months, but the impact on the inflation mess has yet to be seen. This has helped the US dollar index (DXY), which is currently attempting to hold above Tuesday’s high of 104.60.According to Reuters, the European Union (EU) Leaders Summit could prohibit importing or exporting gold from Russia after prohibiting oil imports. If this happens, gold prices may become even more volatile. The monetary policy plans of various central banks indicate hawkish guidance for future policies, which will keep gold bulls on edge.
Gold Technical Outlook
Gold price provided positive trades to test the key resistance 1850 and then bounced bearishly from there to keep the bearish trend scenario active for the upcoming period, waiting for more expected decline on an intraday basis, noting that stochastic provides clear negative signals that we are waiting for to motivate the price to head towards our main targets, which begin at 1810 and ended at 1780.25.
As a result, we will maintain our bearish outlook until the price rallies to breach and hold above 1850. Today’s trading range is expected to be between 1800.00 support and 1850.00 resistance.Today’s expected trend is bearish.