Gold, Chart of the Week: XAUUSD bears are moving in, focus is on $1,750, then $1,720

Gold closed lower on Friday as the dollar and bond yields rose and according to the charts, there could be more downside in store for the precious metal. Rising bond yields are pressuring the metal, which pays no interest, and Fed officials are advocating the need to continue raising rates in order to tame still-high inflation. This puts the Fed minutes from the November meeting in focus released on Wednesday as they could offer new insight into how high officials ultimately expect to raise rates. Fed funds futures traders are pricing for the fed funds rate to rise to 5.06% by June, from 3.83% now.

Expectations of the terminal rate had dropped to 4.89% on Tuesday. Meanwhile, the Fed is widely expected to hike rates by an additional 50 basis points at its December 13-14 meeting. Nevertheless, the minutes will shed light on the FOMC's deliberations regarding the expected downshift in the pace of rate increases, although more importantly,  policymakers will also emphasize that the terminal rate is likely edging higher vs prior expectations as the labor market remains overly tight. 

Gold H1 chart

Gold is pressured below the prior structure and on the backside of the hourly trendline that had been broken mid-week.

Nevertheless, a deeper correction could be in order for the open this week with $1,750 eyed as per the confluence of the 38.2% Fibonacci.

Gold H4 chart

Looking forward, the 4-hour chart's support blocks will be in focus on the way down with the price on the backside of the daily trend:

Gold daily chart

Gold weekly chart

The weekly resistance supports the downside bias with prospects of a break below $1,700eyed.