The yellow metal extended losses for the third consecutive day as well managed to hold the parallel support.
The metal lost momentum again. The focus has turned to the Fed rate hike.
According to Fed William, strengthening US economy signals that the Fed may raise it interest rates in 2015. The possibility that the US inflation rate rises to 2% by the end of 2016 is 50%. Compared to the last week, the situation in Greece is «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 fsll below $ 1,100.00, the gold production will be vulnerable.
The metal has been moving towards lower tops and lower bottoms for a while, consolidating on the lower end of the large bearish head & shoulder pattern. 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 bullish views. The parallel support is found at $1,142.50.
A daily close below $1,148.00 open gates to re-test previous lows of $1,142.50, $1,139.00, and $1,135.00 initially and extend further later.
At today’s Asian session, the metal was trading at $1,148.00 compared to Tuesday’s closing price of $1,149.00. Intraday support is found at $1,146.90, $1,142.50, and $1,139.00. Resistance is seen at $1,157.00, $1,160.00, and $1,164.500. The selling accelerates below $1,146.00 towards $1,144.00 and $1,142.00 and at least $1,139.00. A daily close below $1,139.00 will open gates towards $1,129.00 and $1,122.00
The metal has been consolidating in a tight range, we want to see a clear picture either close below $1,148.00 or above $1,175.00.
The material has been provided by InstaForex Company – www.instaforex.com