Eleven days ago, gold dropped towards $4,120 to hit its lowest level since November last year. It subsequently bounced, topping $4,380 on Wednesday evening before a more modest retreat. Gold recovered again this morning, suggesting that there is still some positive sentiment out there even after last week’s surge in the dollar following a more hawkish-than-expected Federal Reserve meeting.
The precious metal found further support this morning as oil prices retreated following reports that mediators Qatar and Pakistan had helped establish a 60-day roadmap aimed at securing a final peace agreement between the US and Iran.
But gains remain limited. Markets have now priced in a high probability that the Federal Reserve will raise interest rates by at least 25 basis points later this year, and this is weighing on gold prices for now. While further gains are possible, speculators remain on guard for a deeper pullback, which could lead to a test of support around $4,000.
Source: TN Trader
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