Gold – Hawkish Yellen priced-in?

Gold prices are trading lower on the day around $1318/Oz levels in Asia as hawkish Yellen breathed fire into dollar bulls.

However, it appears the hawkish Yellen was priced-in in advance, given the prices are have been deflating since August 18 and clocked a low of $1317 a day before Yellen speech.

Moreover, other major currencies are trading at least two-week lows against the USD, while the yellow metal is holding above last week’s low clocked a day ahead of Yellen. This relative resilience further adds credence to possibility the metal may had already priced-in hawkish Yellen.

Traders now await key US data sets – US personal income and spending report and non-farm payrolls.

Gold Technical Levels

A break above daily high of $1324 would open doors for re-test of Friday’s high of $1340.50. A violation there could yield $1354.40 (Aug 18 high). On the other hand, breakdown of support at $1312 (July 21 low) would shift risk in favor of drop to $1300, which if breached would expose $1287 (June 13 high).