The metal lost momentum again. Traders focused on the Fed's rate hike.
Fed'sEsther George said "Delayed too long to raise interest rates or will hurt the economy.
The US economy has been back on track in the second quarter following first quarter's slowdown.
US wages will begin to grow. Personally, I think that the Fed's rate hike time has already come. The United States will call for a losing monetary policy over a period of time. Current interest rates 25 basis points would not hurt the economy." This is an optimistic view from George.
Barclays says if the price of gold fell below $ 1,100.00 ounce, gold production will be vulnerable.
The metal has been reaching lower tops and lower bottoms for a while, consolidating on the lower end of the large bearish head & shoulder pattern. The nominal support $1,150.00 acts as a crucial level in the near term. The level of $1,155.00 is a key level to watch. On the down side, $1,151.00 and $1,148.00 act as multi-support levels. In all time frames, the precious metal lost all moving averages. On the higher side, $1,165.00 and $1,175.00 act as strong resistance levels to watch. A daily close above $1,175.00 is likely to lighten the bullish views. The parallel support is found at $1,142.50.
A daily close below $1,148.00 opens gate to re-test the previous low of $1,142.50 and $1,135.00 initially, and it is likely to extend further later.
At today's Asia's session, the metal is trading at $1,155.00 compared to Tuesday's closing price of $1,155.90. Intraday support is found at $1,152.50, $1,150.90, and $1,147.00. Resistance is seen at $1,157.00, $1,160.00, and $1,164.500. Intraday selling is available below $1,150.00 with targets at $1,148.00 and $1,147.00. Selling accelerates below $1,146.00 towards $1,144.00, $1,142.00, and even $1,139.00.
The metal has been consolidating in a tight range. We want to see a clear picture either in case of a close below $1,148.00 or above $1,175.00. We do not expect the metal to close below $1,150.00.