Gold prices fell 1.2% on the day on Thursday as it erased the previous three days’ gains in a single session. It has been trading weaker since early Thursday morning after the Fed minutes released the day before saw some mixed signals. This was accentuated by comments from Fed Vice Chairman Richard Clarida who said the US economy was in a good spot despite muted inflation.
Has XAUUSD Reversed Direction?
The declines in the precious metal saw price breaking out to the downside from the resistance area. The sharp declines will likely push gold prices lower to test the 1285 support area in the near term. However, price needs to post a decline below this level in order to confirm the downside.
