In the Asian session, gold prices fell precipitously below the psychological support level of $1,800.00. The precious metal has relinquished a policy-inspired wild movement low of $1,795.50 and is predicted to remain on edge.

Meanwhile, investors have bolstered the risk-aversion theme as the Fed’s higher interest rate peak guidance has heightened recession fears. Fed Chairman Jerome Powell expects interest rates to peak at 5.1% after raising them by 50 basis points (bps) to 4.25-4.50%. The US Dollar Index (DXY) has gained to nearly 103.90 and is projected to reclaim the 104.00 resistance level in the near future.

S&P500 futures have given up their entire gain from early Tokyo, as Fed Chair Jerome Powell has yet to affirm an inflation peak. Investors will be looking forward to the release of the United States Retail Sales report on Thursday. November retail sales are likely to fall by 0.1%, compared to a 1.3% increase announced previously. A drop in retail sales could help the GOLD price in the near future.

Gold Technical Outlook

Gold’s price started the day with a sharp drop, breaking $1,810 and reaching the bullish channel’s support line at $1,790. Because of technical issues, it’s best to stay away until one of the above levels is broken and gives us a clearer sign of the next trend.

It should be noted that if the price continues to fall and breaks the indicated support, it will suffer additional losses beginning at $1,775.50, but breaking the $1,810 resistance would force the price to restart the main bullish trend and go towards 1838.10 as the next positive station.

Today’s trading range is likely to be between $1,775 support and $1,815 resistance.