The price of gold withdrew from weekly highs as more stable government bond yields lifted the dollar. Hawkish Fed expectations are limiting the rise of gold despite fears of inflation.
The price of gold fell on Tuesday after witnessing successive rises following staggering US employment figures.
The resumption of rising US government bond yields has boosted demand for dollars, weighing on unprofitable gold, although looming US-Russian tensions over Ukraine and Sino-US tensions could help lay the floor.
Looking ahead, the focus remains on US inflation data, due later this week for new insights into the Fed’s interest rate plans.
XAU / USD chart:
The technical picture of gold is not clear at the moment, as a break of the main downward trend line will open the way for a potential change in the price action of gold, to move into an upward trend, but for now choppy trading remains.
Alternatively, a break of the basic support of $ 1788 would probably lead to a deeper decline to $ 1770.
Dealer Teodor Iliev