The uptrend that started in the first days of November ended after Gold’s failure to break 1786 resistance. After 4 tries to the upside, the momentum starts to shift against the bullion. If the selloff extends and the 1746 support and 200-hour moving average fail to hold, further downside moves can be expected. St. Louis FED president and one of the most hawkish members of the Federal Reserve hinted that more hikes are on the road and even the most dovish expectations justify more hikes. Bullard even suggests that rates could climb to %5 – %7. Yesterday, another member, Daly suggested %4.75 – %5.25 for the peak rate.
If the hawkish FED comments continue, gold can fall below 1700 in the coming days. For the up moves, gold bulls should watch the 1786 resistance. A break to the upside could open the doors to the 233-day moving average.