Gold Under Pressure: $3,500 Not Base Case
Gold saw its largest weekly fall since June as it ended last week at around $3,865. A strong inflation figure, Fed rate rise expectations and a strong dollar, which hit new 19-month highs, all took their toll.
Bulls must get back above $4,000 to change the narrative. Until that happens, sellers have the upper hand and support will be seen at $3,850. If this level breaks then $3,750 comes into play.
Only then will $3,500 really come into play as a target. A rebound could be seen towards $3,950 however this appears more of a relief rally. We will watch the dollar and Treasury yields closely as they will dictate the next move. I think we will see a volatile week with a bearish bias. Be patient rather than panicking.
#GOLD #Fed
$XAUT
Gold saw its largest weekly fall since June as it ended last week at around $3,865. A strong inflation figure, Fed rate rise expectations and a strong dollar, which hit new 19-month highs, all took their toll.
Bulls must get back above $4,000 to change the narrative. Until that happens, sellers have the upper hand and support will be seen at $3,850. If this level breaks then $3,750 comes into play.
Only then will $3,500 really come into play as a target. A rebound could be seen towards $3,950 however this appears more of a relief rally. We will watch the dollar and Treasury yields closely as they will dictate the next move. I think we will see a volatile week with a bearish bias. Be patient rather than panicking.
#GOLD #Fed
$XAUT
