Article by: ETO Markets

Although there is no follow-through and the gold price stays below the two-week high set on Friday, modest dip-buying is seen. The Federal Reserve and numerous Fed officials' hawkish comments, together with the FOMC meeting minutes that were made public last week, confirmed market bets that the US central bank will maintain higher interest rates for greater periods of time. For the unyielding yellow metal, this is therefore perceived as a major component operating as a headwind.

Technically speaking, traders who are bullish should exercise caution in the event that the market fails to find acceptance over the 50-DMA and experiences a slight decline from $ … intermediate obstacle. Oscillators on the daily chart are only now beginning to show promise for future short-term increases. Therefore, it is more possible that any further decrease will draw in new buyers close to the $… horizontal support. However, a strong break below will reveal the 100-DMA, which is now located close to $...