Fed committee members yesterday said that interest rate cuts should be done with careful scrutiny without needing to rush due to the fact that the economy in America is still in a stable state.
This also reflects that the current interest rate is seen as still being acceptable to the people. This sentiment has resulted in U.S. treasury bonds (Treasury Yield) being traded high.
Geopolitical pressure
Gold prices were pushed lower around the $2,025-$2,022 level following the new sentiment yesterday. But the geopolitical turmoil in the Middle East has provided little stimulus preventing gold prices from continuing to trade lower.
In addition, China's geopolitical crisis is also seen to prevent gold investors from continuing to do "aggressive bearish". Gold investors will now have to wait for the "U.S. Retail Sales" data report and the conference from Fed committee member Bowman for new indications.
But the conference from Fed Bowman is likely to be seen to be able to exert a great influence on the American Dollar.
Technical Analysis
The $2,016 price level takes center stage. If this level is successfully broken, the price of gold can be pushed lower to the level of $2,000 before reaching $1,973.
But if it's the other way around, $2,040 needs to be broken as confirmation to place a "bullish" position.
If it does, $2,065-$2,078 will be the first hurdle before continuing the rise to $2,100.
