Gold Prices Hover at $1,950 with Fed Rate Hike Uncertainty

Gold prices experienced a decline on Thursday as it entered a bearish consolidation phase and traded within a narrow range during the early part of the European session. Currently, it's hovering around $1,950, just above its lowest level since October 19, which it reached yesterday. This decline is primarily due to uncertainty about future interest rate hikes by the Federal Reserve. Additionally, concerns about the Israel-Hamas conflict, which had been affecting market sentiment earlier in the week, have somewhat eased.

However, the downside for gold is being supported by the belief that the US central bank is unlikely to raise interest rates further. This expectation has led to a decrease in US Treasury bond yields, putting pressure on the US Dollar (USD) and providing some support for gold. Furthermore, concerns about China's economic situation and overall cautious market sentiment are also helping to limit the decline in the precious metal's price. Traders are awaiting more clarity on the Fed's future policy decisions, with a particular focus on Fed Chair Jerome Powell's upcoming speech during the US session.

Gold is currently undergoing a correction before continuing its upward trend. This correction is important as it can establish the old resistance level as a new support level.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2040	2020	2006	1963	1947	1920