Gold prices continued to fall on the broader market sentiment. Fed vice-chair Richard Clarida gave a speech on Thursday. He reiterated the general consensus that interest rates are appropriate for the economy for the time being. He reaffirmed that the Fed was ready to adjust policy if needed. Clarida was also optimistic about the economy, noting that consumers will drive economic expansion into the eleventh year.
XAU/USD Breaks the Major Trend Line
The precious metal has slipped past the second trend line as well indicating further weakness. Continued declines will see gold dipping to the 1534 handle in the near term. But considering the payrolls report today, we could expect a rebound. For the upside to regain momentum, XAUUSD will need to break past the 1594 highs.
