US ISM Services data offered hawkish Fed policy estimates, indicating that the USDX has found strong support at 104, which should be low in place in five months. The gold price paused at $1,810 and fell by nearly $40 on Monday as there was fear of a Fed rate hike in the market. Traders wait to see the latest US PPI result on Friday to check the inflation pressure and indicate the path of the Fed’s rate hikes.
XAUUSD – 4 Hourly Chart
The prospect of the Fed keeping interest rates high has eclipsed gold. Technically, the gold price turned around before approaching $1,810, indicating that the emergence of top pressure has also exacerbated the decline. It is necessary to check whether the upward trend line since late November can ease the downward trend and hold on to $1,770. If it breaks, the gold price will test the previous resistance of $1,757 or the last low of $1,744.
