Gold keeps going South as price has now gone below 1.5-month low at $1,196. Now it appears that the future of the precious metal could be determined by the Federal Reserve’s decision to raise the interest rates. If next week the Fed does just that, Gold would most likely get hit harder. If not, Gold can hold up.
Today Gold went below the psychological level of $1,200 as bears did not even face a hint of resistance. Immediate support rests at $1,193, the Fib level of 61.8 falls on $1,176 and major support is $1,142.
If Gold is fortunate enough to stop at one of those levels, bull targets are seen at $1,230, $1,265 and $1,300.
It is also important to weigh Trump’s policies as a factor that will likely shift the Fed’s outlook.