Gold prices consolidated in the early part of the European session following yesterday’s selloff as $1800 psychological level comes back into focus. Gold is looking to extend its losing streak to a third straight day as a batch of US data and further commentary from Fed Chair Powell lies in wait.
Gold has retreated from its multi week high price around $1856 as losses gained traction from Fed Chair Powell’s testimony before the Senate Committee in Washington DC. The key takeaways being a higher peak rate as well as potentially increasing the pace of hikes based on data. The probability of a 50bps rate hike is now at 73.5% for the Feds March meeting up from 29.9% a week ago.
