Gold has been very bearish recently making a big bearish move with some solid bearish candles. However, an up trending trendline still holds the key. I assume that the buyers may wait for the price to produce a bullish reversal to go long in Gold. Let us wait and watch how it goes.
Gold was under strong downward pressure due to the move of US President Joe Biden, who nominated Mr. Jerome Powell to hold the position of chairman of the US Federal Reserve for another term. Lael Brainard, who is said to be another leading candidate for the position, will become the new vice president. President Biden said he believes Powell is the right man to pursue full employment and tackle inflation.
As Powell remains the chair of the Fed, uncertainty has also eased. This also puts gold under a lot of pressure. In addition, Money Markets expect the Fed to raise interest rates by 25 basis points next June (previously scheduled for July) – This also puts pressure on Gold.