Gold Price Prediction for June 16, 2017

Gold prices have been under pressure over the last couple of days, ever since the Fed announced the rate hike on Wednesday. Though there was a brief while on that day when it appeared that the Fed might hold back and wait to see some more incoming data, especially considering the weak CPI and Retail Sales data that came in on that day, the rate hike was very much on the cards and the Fed did not disappoint. The Fed also chose to brush aside the weak economic numbers as just another one off event and chose to focus on the economic growth.

This bullish stance from the Fed caught the markets by surprise and gold prices, which had moved into the 1280 region on the back of the weak data, came crashing back down to the 1270 region and over the last 24 hours, we have been seeing the prices fall lower and lower, first towards the support at the 1265 region but the prices did not last long there and have since fallen further towards the next support which comes in at the 1248 region which should hold the move down for now.

Gold Expected to Weaken Further

We expect the 1248 region to lend some strong support and even if it breaks, then we see the next support coming in at the 1220 region which could be the short term target for the bears. This region has held off several attempts to break through and we may see another attempt at this region in the short term. The bulls are fried for now and the buyers would do well to stay well clear.