Gold, Silver & the Fed

Whether Fed chair Powell sounds dovish or hawlish in his last press conference as chairman of the Federal Reserve later this evening, the downward path of last resistance for gold and silver is 4430/60 and 69/70 respectively. Using simple horizontal support lines, both metals are likely to find next support around this region, which coincides with the closing value of XAUUSD on the day it bounced off its 200-DMA on March 23. The run-up in US (and rest of G7) bond yields is also dragging down metals and boosting US Dollar. The next shoe to drop is likely to be equities at which point, the selloff in metals will diminish.

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