The past few days have certainly not been kind to gold.
After struggling to nurse deep wounds inflicted by last week’s brutal selloff, the precious has descended deeper into the abyss. Appetite for gold continues to be smothered by an appreciating dollar and aggressive Fed hike bets. This continues to be reflected in price action as gold dipped below $1700 on Thursday for the first time in almost one year and heading for its fifth weekly loss. With the latest red hot US inflation figures reinforcing expectations over the Fed making a big move this month, gold could remain depressed and unloved.
Looking at the technical picture, prices are under intense pressure on the daily, weekly, and monthly charts. All eyes will be on the critical support at $1700. A strong breakdown below this level could open doors to levels not seen since June 2020 below $1675. Should $1700 prove to be reliable support, prices could rebound back towards $1724 and higher.