Gold lost out to improved risk sentiment at the start of the week while the yen dropped 0.61% and the precious metal fell to a recent low of $1,243.46.
Gold traded as high as $1,280.48 on the 14th June before sliding thus far. The FOMC painted a more rosy outlook for the US economy and recent reports are suggesting a pick-up in world growth that is lifting spirits in markets; Investors are still prepared to keep elevating the US stock market to all-time highs. At the same time, the dollar outperformed today and the DXY made a high of 97.57. All in all, should the market continue to view the Fed as hawkish, gold will struggle while yields remain elevated.
Gold remains within a rising trend from $1,218. $1,214 to the downside is a critical support area that if was broken, may otherwise bring forward a technically bearish case. Next stop could be $1239.88 (Mar 31 low) below $1,240. To the upside, $1,280 and $1,296 double top levels are key for a continuation of the bullish trend.
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