Gold is once again back at familiar resistance as the latest uptick stems from rising odds of Fed’s Brainard becoming the next Fed Chair. A reminder that in light of last week’s reports of Fed’s Powell and Brainard meeting Biden at the White House, gold closed at its highest level in two months. While overnight, source reports noted that Brainard had been interviewed for the Fed Chair position and thus keeping the precious metal elevated. That being said, given that Brainard is considered to be more dovish than the already dovish Chair Powell, should Brainard be confirmed as the next Fed Chair, the initial reaction is likely to be one of USD selling, alongside US treasuries and Gold pushing higher, particularly given that bookmakers remain heavily in favour of Powell being renominated
GOLD BULLS FACE SIGNIFICANT HURDLE
As I mentioned above, gold is back at familiar resistance at 1832, which marks the 61.8% Fibonacci retracement of the 1450-2071 range. The level also coincides with the trendline stemming from all-time high, increasing the significance of the area, which has rejected gold topside on several occasions from July. Therefore, a close above would be a significant development for bulls and open the doors to 1860-75.
GOLD BULLS FACE SIGNIFICANT HURDLE
As I mentioned above, gold is back at familiar resistance at 1832, which marks the 61.8% Fibonacci retracement of the 1450-2071 range. The level also coincides with the trendline stemming from all-time high, increasing the significance of the area, which has rejected gold topside on several occasions from July. Therefore, a close above would be a significant development for bulls and open the doors to 1860-75.