Gold prices did not react much to Fed Powell’s speech. Giving his testimony to Congress, the Fed Chair said that the bank is closely monitoring the impact of coronavirus.
Elsewhere, on monetary policy, Powell struck a neutral chord. However, the precious metal started to dip closer into the late European trading session.
XAU/USD Reverses at Resistance
The precious metal, after failing to breakout off the resistance level at 1573 – 1568, is pushing lower. This could potentially confirm the downside correction.
But price action needs to close below the previous pivot lows of 1548.29 to confirm the downside. The next lower target is at 1534.14.
