The precious yellow metal heads closer to the $1,757-64 objective after the recent three rejections from topside resistance at $1,815 has left the bulls bruised.
Earlier this week, U.S. Federal Reserve Chairman Jerome Powell said the Fed is ready to use all of its tools against high inflation during his testimony before the House of Representatives Financial Services Committee.
The risks of high inflation have “clearly risen”, and the Fed’s monetary policy would adapt accordingly, he said, adding inflation “has spread more broadly in the economy.”
Powell’s comments came a day after his remarks before the Senate Banking Committee that the Fed would discuss winding up its asset purchases faster at its next FOMC meeting on Dec. 14-15.
Eyes now turn to the key U.S. economic data later today.
The U.S. jobs report (Non-Farm Payrolls) forecast predicts hiring in the U.S. accelerated in November for the second month in a row. With much volatility expected, the forecast states that 553,000 jobs were added in November, up from 531,000 in October.
Based on the technical aspect, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains negative, although bullish divergence is evident.
Meanwhile, the Moving Average Convergence Divergence (MACD) supports a bearish bias.
Given the bearish risks that hold, along with negative signals, views a potential challenge of $1,757-64. Reassess from there as a potential rebound may arise.