Gold prices were seen trending lower this morning after price rallied to a fresh six-year intraday high of 1439. Fed Chair Jerome Powell stressed the independence of the central bank in a speech on Tuesday. Powell also warned about the risks of monetary policy caving into political interests. Powell, however, did not tip his hand into what the Fed would do at the next meeting. The odds for a July rate cut have been increasing since the last Fed meeting.
How Far Will Gold Prices Correct?
The strong gains in gold prices over the past few weeks has led to the precious metal appreciating over 10% in just four weeks. However, the early correction seen this morning has pushed price to the short term support of 1404.33. A rebound off this level could keep prices supported to the upside. However, gold will need to break past the previous highs above 1439 to confirm the bullish trend continuation.
