Article by: ETO Markets

The Federal Reserve raised expectations for a potential move at the June policy meeting by projecting a less restrictive policy stance and three interest rate decreases this year. This is further supported by a recent decline in US Treasury bond yields, which may deter excessive wagering by USD bulls and sustain the price of gold, which never goes down. 

The $… support or the weekly trough might be exposed by some follow-through selling below the overnight swing low, which is located around the $… region or the 100-HMA. A strong break below the latter might push the price of gold closer to the next significant support, which is located near $…, and eventually to the $… round number.

Conversely, the psychological barrier of $… appears to be a barrier that bulls would likely attempt to overcome in order to challenge the record high, which was touched on last Thursday in the $… range.