Spot gold fell nearly 80 dollars during June after rejecting the key resistance level at $1,880.
The downside objective has also been reached at $1,801-04 Thursday.
The U.S. Federal Reserve’s chatters over the month have attributed the bearish move as much rate hike talk keeps the bearish momentum in check!
The question now asked is how low can spot gold go?
New U.S. data for May showed little immediate relief from the record pace of inflation pushing the Federal Reserve toward another oversized interest rate increase next month. Inflation, measured by the personal consumption expenditures price index, was 6.3% on an annualised basis in May, the same as in April and still more than triple the U.S. central bank’s formal 2% target.
The question now asked is whether the US Federal Reserve will proceed with another 75-basis-point rate hike next month or not?
Based on the technical assessment, the Relative Strength Index (RSI) indicator, 3-daily ‘lookback’ is negative but oversold, while the Moving Average Convergence Divergence (MACD) holds a negative signal, while the ADX indicator supports a bearish trend.
With bearish eyes set lower than $1,800, now views the key region of $1,788-92. Reassess from there.
Viewing the topside, the resistance is at $1,820-26 in the short term.