Selling pressure is driving gold below the $1900

Taking a look at gold movements

The precious metal has experienced a significant decline, influenced by the strengthening of the US dollar against most major currencies and commodities. This is particularly evident after the release of the Federal Reserve meeting minutes, which leaned towards more interest rate hikes.

In light of this, the Federal Reserve meeting minutes revealed that officials expressed concerns about the inflation rate during their previous meeting in July. They stated that unless economic conditions change, additional interest rate hikes will be necessary in the future.

The meeting minutes confirmed that most members were worried that inflation rates were still below the bank's target levels.

According to the meeting minutes, "Given the ongoing inflationary pressures exceeding the Federal Reserve's target and the moderate growth in the labor market, the majority of participants believe that there are increasing inflationary pressures that require further tightening of monetary policy."

It is worth noting that during its July meeting, the US Federal Reserve decided to raise interest rates to a range between 5.00% and 5.25%, marking the highest level in over 22 years.

Key technical and pivotal levels that might impact gold movements

Gold prices managed to break important support levels at $1900 per ounce yesterday, reaching levels around $1890, which is the lowest since the end of June.

However, the yellow metal has managed to reduce some of the losses incurred during today's trading and has stabilized near $1895 per ounce. Generally, the bearish scenario remains the most likely in the medium term, supported by technical indicators, if trading remains below the $1900 levels. It may potentially return to around $1850 per ounce.

In the event that the price rises above $1900 levels, it is likely that prices will enter an upward corrective movement that could extend to $1910 per ounce.