The yellow metal extended losses for the 4th consecutive week as well.
In Fed William words «US economy strong sign that the Fed may raise interest rates in 2015».The possibility of the US inflation rate rose to 2 percent above the end of 2016 was 50%.Compared to last week, the situation in Greece, «a little less worrying.»
BlackRock CEO Larry Fink says «Fed rate hike will make more money into the bond market, rather than less. The Fed is expected to begin normalizing interest rate path».
Barclays says, if gold prices fell below $ 1,100.00 an ounce, the gold production will be vulnerable.
At today’s Asian session, the metal fell very badly. A new week started on a bearish note at $1,133.90 low made at $1,087.20, fell 4% in a short span of time. After touching a descending lower end of a channel, it bounce back above $1,100.00.
The metal has been reaching lower tops and lower bottoms breaking below the large bearish head & shoulder pattern. In all time frames, the precious metal lost all moving averages.
Earlier, we forecasted that the daily close below $1,139.00 would open gates towards $1,129.00 and $1,122.00.
Intraday support is found at $1,104.00, $1,096.00, and $1,087.00. Resistance is seen at $1,111.00, $1,120.00, and $1,134.00.
The weekly support is found at $1,085.00, $1,068.00, and $1,060.00.
The material has been provided by InstaForex Company – www.instaforex.com