Gold Technical Forecast: According to the daily chart, gold (Yellow Metal) is poised to extend its decline. Yellow Metal has retreated below a mildly bearish 20 SMA while it approaches a directionless 200 SMA, offering dynamic support around 1,837.00. Technical indicators, in the meantime, retreat from their midlines, gaining bearish traction within negative levels.
Gold Price Forecast and Outlook: Gold (Yellow Metal) is back above a two-year-old resistance trendline and so far reclaimed the 200-DMA at $1835 That said, the non-yielding metal bias shifted from negative to neutral.
Gold Update: “Powell voiced a willingness to take rates beyond neutral in an effort to tame inflation, while sounding tone-deaf regarding economic worries given data is still robust for the most part.”
Gold market reversed its earlier gains after Fed Chairman Powell’s statement that monetary policy tightening could become more aggressive if inflation doesn’t come down.
Spot Gold Forecast: Considering the yellow metal’s moves since April 18, gold portrays a falling wedge bullish chart pattern on the four-hour play. That said, nearly oversold RSI (14) keeps gold buyers hopeful of further recovery moves.
Gold Forecast: With the global central banks moving towards a higher interest rate environment, led by the US Fed, it’s not surprising to see the pressure on Gold prices.