Hawkish Effect Weighs Strongly on the Bullion Metal

Taking a cursory look, reveals gold bears are holding sway with metal traders weighing the outlook for monetary policy negatively after the U.S Federal Reserve’s unusual hawkish narrative kept prices of gold below $1,760 per ounce after falling to their lowest levels since April 15 at Tuesday’s trading sessions.

Candle chart patterns further reveal gold bugs seem to be exhausted on the account that the U.S Central Bank pulled forward its expected periodicity and pace of interest-rate increases, and started a narrative of when to taper asset purchases.

Some traders however remain on the sidelines as they await U.S. jobs report for further clues on the U.S Central bank monetary guidance moving forward.

Recent price patterns further reveal the yellow metal has lost about 8% this month, on the surprisingly hawkish effect handed down by the U.S Federal Reserve Bank earlier in June. though on a much broader scale the yellow metal has posted gains of over 3% for Q2.

Consequently, metal l traders are bearishly weighing the asset after digesting a top U.S Fed official, Christopher Waller most recent comments on being very optimistic about the world’s biggest economy attaining substantial recovery and further predicting the apex bank could start hiking interest rates next year, momentarily weakened the buying appeal for the precious metal.

Though recent dovish sentiments gave near-term support for gold prices around $1,750 per ounce after a key U.S fiscal official Thomas Barkin on Tuesday disclosed that the labor market wasn’t close to its pre-COVID-19 levels thus wanted to see much improvement before tapering comes to play.