Safe haven metal gold prices dropped by $1,400 level due to multiple speeches by U.S. Federal Reserve leaders in the upcoming two days. Besides that, the increasing expectations that the U.S. Federal Reserve will not aggressively cut interest rates later this month also boosted the dollar, ultimately making gold expensive for holders of other currencies.
Gold futures slipped 0.4% to $1,396.45 and it has immediate support around 1,384 for now. The Federal Reserve Chairman Jerome Powell is set to speak this week at Congress including ten more U.S. central bankers. The Fed’s June conference minutes are also expected on Wednesday.
Gold – Technical Outlook
On the technical side, gold is still holding in the same trading range of 1,410 – 1,382. The series 20, 25 and 50 periods EMA is likely to keep gold prices below 1,410. On the 4 hour timeframe, gold has formed a Doji pattern over 1,390 which is suggesting bullish bias. While the bearish trend can be seen below 1,410 today.
Support and Resistance
Key Trading Level: 1401.49
Gold prices may continue to trade bullish until 1,437 in case of the bullish breakout at 1,410. Whereas, the breakout of 1,382 may extend bearish rally until 1,356. All the best!