Speculation on which way the Federal Reserve will lean on its rate policy come July 31 weighed on gold prices on Monday, with almost as many traders appearing to bet the central bank might not immediately pull the trigger on easing as opposed to those wagering on a rate cut. Gold prices dipped as the surprisingly strong US jobs report for June kept the market in suspense on whether $1400 pricing will become the norm again. A slew of speeches by the Fed’s top officials this week is expected to feed gold traders’ obsession for a rate cut. There are as many as 10 scheduled speeches by central bankers, including Fed Chair Jerome Powell, who’ll be delivering two days of testimony to House and Senate panels. The Fed’s June meeting minutes are also due on Wednesday. Of these, the most closely watched will be Bullard, who was the only dissenting voice at the June 18-19 Fed meeting, when the central bank decided to hold rates. Bullard is one of the more dovish members of the central bank’s policy-setting Federal Market Open Committee and voted for a rate cut.
Gold prices tried to break above the $1400 level after dipping below it, but failed to settle above it and instead headed down towards the $1392 support level. The price is currently hovering around the $1392.80 support level with a negative momentum which is loosing steam more and more. We will be focusing on the downside especially the $1382.76 support level.
Support: 1392.80 / 1382.76
Resistance: 1401.62 / 1410.78