GOLD (June 22) Hawkish Fed is pushing the downtrend to continue
Gold prices are strengthening and defending the $1930 level, while the US dollar remains low, awaiting new signals from US economic data and Fedspeak.
Fed Chairman's remarks disappointed speculators on the US dollar, allowing gold to experience an impressive recovery on Wednesday.
Powell made some small surprises during his testimony on the Fed's Monetary Policy Report to the House Financial Services Committee and reiterated the message from the previous policy meeting that increasing interest rates in the US is a "pretty good guess" on the Fed's direction if the economy continues to grow.
Fed Chairman's remarks disappointed speculators on the US dollar, allowing gold to experience an impressive recovery on Wednesday.
Powell made some small surprises during his testimony on the Fed's Monetary Policy Report to the House Financial Services Committee and reiterated the message from the previous policy meeting that increasing interest rates in the US is a "pretty good guess" on the Fed's direction if the economy continues to grow.
Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,90. First resistance is seen at today’s high of $1,950 and then at $1,960. First support is seen at today’s low of 1,929 and then at $1,920.