Gold has a tough time taking out 50% Fib retracement hurdle

Gold prices failed to take out $1255.23 (50% Fib R of $1214.40-$1296.06) in Asia amid flat action in the treasury yields and US dollar index. 

Focus on Fed speak

The USD may regain the post-Fed bid tone if the policymakers - William Dudley and Evans - scheduled to speak at 12:00 GMT and 23:00 GMT, respectively, defend last week’s Fed’s hawkish rate hike.

Hawkish comments by the policymakers could also push up the treasury yields. Thus, gold stands to lose. On the other hand, the yellow metal may breach the Fib hurdle if the dollar fails to regain poise. Note the 2-year treasury yield failed near 1.4% last week, leading to a bearish outside day candle on Friday. A bearish follow-through today could help strengthen gold prices. 

The yellow metal is inversely related to treasury yields (interest rates). 

Gold Technical Levels

A break above $1255.23 (50% Fib R of $1214.40-$1296.06) would open doors for $1259.24 (June 2 low) and $1264.87 (38.2% Fib R). On the downside, breach of support at $1250.96 (session low) could yield a pull back to $1245.59 (61.8% Fib R) and $1239.88 (Mar 31 low). 

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bearish Neutral Low
1H Strongly Bearish Neutral Low
4H Strongly Bearish Oversold Low
1D Bullish Oversold High
1W Bearish Neutral Shrinking

 

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