Gold Slips to $1,787 as FED Rate Hike Sentiment Dominates
The gold price fell to nearly $1,787 in the Tokyo session after failing to hold above the important resistance level of $1,805.00.
The gold price fell to nearly $1,787 in the Tokyo session after failing to hold above the important resistance level of $1,805.00. The precious metal XAU/USD has entered a bearish trend as investors get concerned about the Federal Reserve’s (Fed) policy outlook.
New developments in the United States’ economic prospects following a better-than-expected employment report and service sector demand for November signaled that the Fed may maintain the rate hike pace to offset new evidence indicating a rebound in inflation or may provide higher interest rate guidance.
However, Fed members warned that continuing with a higher rate hike regime could exacerbate financial vulnerabilities in the US economy.Meanwhile, the US Dollar Index (DXY) is battling to break through the immediate resistance level of 105.20. S&P 500 futures are doing poorly as investors remain on the sidelines ahead of Fed policy.
Investors will also pay attention to the US Consumer Price Index (CPI) data, which will be released on Tuesday. According to the consensus, headline inflation will remain at 7.7%.
Gold Technical Outlook
The gold price’s climb stalled near the $1,810 level, prompting negative trades by today’s open, indicating an intraday decrease, primarily targeting the crucial support base of $1,764.40.
As a result, the negative bias will be proposed for today, and breaking $1,780 will ease the mission of attaining the indicated objective, while exceeding $1,805 will stop the projected slide and lead the price back to the main positive trend.
Today’s trading range is predicted to be between $1,764.40 support and $1,800 resistance.
Today’s projected trend: Bearish
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals