Spot gold edges higher on Monday after hitting the lowest in almost one year last week, being deflated by rising dollar on expectations of aggressive Fed in its July policy meeting.
The US central bank announced it will likely raise interest rate by 75 basis points, in its fight with soaring inflation, but speculations about stronger hike of 1% started to circulate last week after report showed that US inflation continued to rise and hit the highest in four decades.
The latest comments from US policymakers who said that the central bank will stick to its decision for 0.75% hike, cooled the situation and soured metals strong bearish sentiment that resulted in so far mild recovery, after gold was in a steep descend for five consecutive weeks.
Fresh bounce sees a break through falling 10DMA ($1731) as a minimum requirement to keep recovery in play, though more work at the upside, such as lift above falling 20DMA ($1776) and psychological $1800 level, would be required to confirm reversal and shift focus higher.
Daily technical studies remain weak, with strong negative momentum and MA’s in full bearish setup, weighing on recovery
Res: 1723; 1731; 1745; 1758
Sup: 1705; 1697; 1680; 1652
