Gold prices extended declines for the fourth consecutive session, losing 0.83% on the day after pulling back from a 4-month low. Sentiment was already weak but only grew steady as Chicago Fed President Evans said that he expects one more rate hike by 2020. Similar views came from Boston Fed President Rosengren who stated that the economy was doing quite well.
Will XAUUSD Rebound to the Upside?
The declines in the XAUUSD saw the price of the precious metal falling to the 200-day moving average on a daily basis. Price posted a modest pullback following this decline. We expect the bearish momentum to slow as a result. A pullback is quite possible in gold prices with the recently breached support of 1285 likely to serve as resistance.
