The price of Gold recently dropped below the 4-week low amidst the strengthening US dollar. The price of the US dollar is expected to rally further in the coming weeks which will potentially push the Gold price further down.
The price dropped below the 1905.0 support level and will possibly continue the bearish trend. I am expecting the price will make a pull-back to the same level which now will act as a resistance level and from there it will continue its downward trend. The 0.786 Fibonacci level around 1905.0 is another confirmation for sell entry at this level.
There is a 40% chance that the Fed will need to raise interest rates “meaningfully” to beat inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.
However, the Gold price will remain calm this week as there is no major news that could impact the market significantly.
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