The bearish momentum in gold prices took a pause with somewhat muted declines on Friday. Gold price turned slightly bearish on Friday, but the momentum is likely to resume today as price battles a key support level. The rising sentiment in the markets with the hawkish undertones from the Fed has weakened the appetite for gold.
Will Gold Maintain the Bearish Momentum?
Gold prices will need to clear the support level formed at 1285 region in order to confirm the downside momentum. With the support level having held nearly three times on the past retest, there is scope for the support area to weaken. A close below 1285 on a daily basis could potentially mark the downside correction in gold. The next main target will be at the 1233 handle.