Gold price is still on the front side of the bearish trend as per the daily chart, but there are risks of an upside extension on a break of key resistance structures.
In recent weeks, investors have aggressively cut gold length amid continued hawkish rhetoric coming from the Federal Reserve.
The futures market is pricing a high probability of another 25 bps in late July from the Federal Reserve.
”While there are fewer price pressures in the economy, recent data suggest that rates will move higher on the front end of the curve and stay at elevated levels for some time, which implies that gold will continue to have little reason to move significantly higher anytime soon,” TD Securities said.
This leaves the focus on a downside continuation, the front-side of the bearish dynamic trend lines.
