Gold was down on Wednesday morning in Asia as investors digested U.S. Treasury Secretary Janet Yellen’s comments about the possibility of interest rate hikes.
on Tuesday said that interest rate hikes might be needed to stop the economy overheating due to U.S. President Joe Biden’s spending plans. She clarified later in the day, however, that she saw no signs of inflation and was not predicting the U.S. Federal Reserve’s move on rates.
Investors now await comments from other senior Fed officials, including Chicago Fed President Charles Evans and Cleveland Fed President Loretta Mester. Questions also remain pertaining to whether Biden will nominate Fed Chairman Jerome Powell for a second four-year term remains.
The failed test up around the 1798.0 resistance continues a turn back to short term bear trending action. Selloffs after the close has trade poised for a bear day and close under 1770.0 implies a bear wave to 1761.0, when broken 1728.0. Any corrective congestion capped under 1789.0 should bear flag a setup for selloffs.