Gold has moved from 1265 to 1295-1298 after the new Fed Chair announcement some weeks ago. The USD has been sold off in the last 3-4 weeks, however today the new Fed Chair, Mr Powell, will have a meeting in Congress and will speak about raising interest rate plan and bank regulations.
Gold is moving following the USDJPY and it has strong support around 110.90-111.00 zone. If the USD moves up during the new Fed Chair speaking and the USDPY confirms the end of its long term correction, gold will resume its down trend and it will drop to test the 1275-1280 zone.
However, gold will move up to 1305-1307 if gold cannot drop bellow the 1289-1291 during Mr. Powell’s speaking and later at 20:00 GMT, another speaking about monetary policy by Mr Mnuchin – Treasury Secretary