Gold extended losses and closed down by -0.42% that is at 20641 hovering near the lowest level in seven days after hawkish remarks by St. Louis Fed President James Bullard boosted the US dollar and dampened demand for the precious metal. St. Louis Fed President James Bullard said that the FOMC “may not be willing or able to wait until all global uncertainties are resolved to begin normalizing policy”. Meanwhile, ECB President said on Monday that inflation rates remained “durably” above its price stability target, reinforcing expectations the central bank would raise interest rates as early as April. Rate hikes tend to dampen gold prices in the short term, but over the long run, gold still benefits from rising inflation as investors seek safe haven options. Now gold is getting support at 20595 and below could see a test of 20550 levels, and resistance is now likely to be seen at 20705, a move above could see prices testing 20770.

Trading Ideas:

Gold trading range is 20550-20770.

Gold fell as signs of central banks' monetary tightening prompted selling

Gold looks to take support at 20595 and resistance at 20705.

In spot gold looks to get support at 1404$ and resistance at 1426$ level