Gold price dipped to one-week low on Wednesday, deflated by the latest hawkish comments from Fed policymakers.
The US central bank expects to bring inflation under control by keeping policy rate unchanged for some time, but also reiterated their willingness to further, if necessary, tighten the policy.
The sentiment soured after such comments, though larger bullish bias is expected to remain intact while metal’s price holds above key supports at $2300/$2280 (psychological / the floor of consolidation range under new record high.
Daily studies are mixed, with 14-d momentum heading deeper into negative territory, conflicting MA’s and stochastic penetrating oversold territory, lacking clearer direction signal.
Markets focus on release of US inflation data (PCE) on Friday which would provide more details about the timing of Fed’s next steps, after the first rate cut schedule was postponed several times.
The price is likely to remain in extended consolidation before larger bulls regain full control, as high global economic and geopolitical uncertainty keeps safe-haven demand.
Res: 2325; 2342; 2368; 2387.
Sup: 2300; 2277; 2272; 2249.
