Gold is off the lows but remains vulnerable amid the underlying narrative the Fed could announce a sooner-than-expected rate hike, as the TIPS market has also started pricing in higher future inflation. The benchmark 10-year Treasury yields rallied to the highest levels in three-months at 1.55%, as Fed officials noted that they see tapering close. The US dollar has tagged higher alongside yields, exerting additional downward pressure on gold price.
According to the Technical Confluences Detector, gold faced rejection at strong resistance around $1743, which is the confluence of the pivot point one-day S1 and Fibonacci 38.2% one-month.
If the abovementioned hurdle is cleared, then gold bulls will look to test the previous day low of $1745.