Gold Faces Selling Pressure Ahead of Fed Speech — Markets Cautiously ‘Lock In Profits’ Before the Storm

Yesterday, on the first Monday of the week, Gold opened with an impressive rise after maintaining strong upward momentum above the 42xx$/ounce zone since Friday.

However, concerns that Fed Chair Powell’s remarks might lean more hawkish caused Gold’s upward momentum to stall, and this morning it experienced a sharp correction down to around 4196$/ounce before slightly rebounding to the 421x – 422x range.

The Fed Chair’s speech did not provide clear details on monetary policy, interest rates, or inflation, as economic data is still not clear enough. Therefore, in the short term, Gold is likely to move sideways while waiting for a clearer signal to make a directional decision.

In the short term, the possibility of Gold continuing to rise is more realistic, as December is typically a “profit-taking” month for big players, causing other markets to drop sharply and pushing capital flows more heavily into Gold.