On June 16, the US Federal Reserve published the Federal Open Market Committee’s Statement, Economic Projections and Federal Funds Rate. The main news that the markets reacted to was the revelation in the Economic Projections that the central bank could hike interest rates in 2023, as it expects an end to the coronavirus and growth of inflation.
The announcement caused a sharp drop of the yellow metal’s price. In the aftermath of a minor retracement back up on Wednesday, on Thursday, the price resumed its decline. By the middle of the day, the price had reached the support of the 1,800.00 mark. The 1,800.00 provided resistance in April and May.
In the case that the 1,800.00 level provide support, the bullion’s price could recover to the 1,850.00 level, which has previously shown that it can provide both resistance and support.
On the other hand, a potential decline below the 1,800.00 mark could look for support in round price levels. The metal found support in various round price levels in the 1,750.00 to 1,800.00 zone throughout April.
