Gold price ends lower on Thursday as investors continues to mull over the Federal Reserve’s minutes for its April meeting. Failing to get any lift from yesterday’s dovish Federal Reserve minutes, the yellow metal fell under pressure, sliding to the low at 1,202. Edging lower to touch the 80 days EMA lines, technical pattern looks to suggest that the precious metal is shifting firmly into the bear wave. That being the case, the precious complex could see choppy and sideways trading in the week ahead.
It was a relatively weak session for the precious complex on Thursday. Consolidating in the Asian session, gold drifter lower in the London session as technical pattern remains firmly gripped by the bears. Again as the U.S. session enters, the precious metal slipped further downside as selling accelerating. The low at 1,202 was hit following the release of U.S. Existing home sale and Philly Fed Manufacturing Index (despite data reporting weaker thatn expected). Still, the selling was short lived as the yellow metal rebounded at later stage to close at 1,206.On the sight of the bearish set up,Gold could continue on its downside momentum later today.
Gold continues to be drawn towards the downside, with the metal failing to move above the 161.80% Fibonacci Expansion point, breaking the embolden downtrend line. On the renewed rally in the U.S. dollar strength this week, any bullish enthusiasm in the precious metals is slowly but surely dwindling (on observation on H1 chart). Struggling to break out of the top range at 1,230, the precious metal is remaining on course for a downside correction. Still, traders should look to the near term support at 1,200 despite the turn in bearish sentiment. Any break lower the mentioned level would reinforce further selling.