Article by: ETO Markets

At its policy meeting in May, the Federal Reserve kept the Federal Funds Rate unchanged, as anticipated, between 5.25% and 5.5%. Powell clarified, however, that central bankers are looking for "more confidence" that the rate of inflation is approaching 2%. "It's likely going to take longer than anticipated to achieve such increased confidence. Powell continued, US Fed is ready to keep the current target federal funds rate in place for as long as it is appropriate.

The price of gold is confronted with strong resistance at $…, the 20-DMA. A persistent increase over that mark will rekindle bullish sentiment and necessitate a challenge of the $… round barrier. The high of $… on April 22 is the next topside target.

Alternatively, the multi-month low of $… will be tested below the $… barrier, which represents the immediate support. If the latter is not defended, there will be a further decline toward the 50-DMA, which is currently around $...