The Fed's hawkish outlook prompted fresh selling around gold on Thursday. With the benchmark 10-year US Treasury bond yield rising more than 1% on the day, gold stays deep in the red around $1,770.
Gold came under some renewed selling pressure on Thursday and dropped to a near one-month low, around the $1,768 region during the early part of the European session.
The overnight attempted recovery met with a fresh supply and faltered near a technically significant, 200-day SMA. This comes on the back of the recent break through a one-week-old trading range support and adds credence to the negative outlook. Hence, a subsequent slide towards testing the November monthly swing low, around the $1,759 region, remains a distinct possibility. The steady decline could further get extended towards the next relevant support near the $1,750 area.
