GOLD NOW LIKELY TO FALL BACK TO $1,180/OZ.
The precious metal’s recent pull-back has found short-term resistance around $1,208/oz.and may struggle to breach this level in the short-term after Federal Reserve chairman Jerome Powell said that the outlook for the US economy was remarkably positive, hinting that interest rates may have to move higher than current market expectations. With a December 0.25% US interest rate hike already baked into the market, the March meeting now comes into play for another rise. The Fed had been expected to raise rates three times in 2019, but expectations are now leaning towards four hikes, underpinning ongoing US dollar strength.