There has been a decent bullish rally in the gold market in the last week due to recent weakness of the green bucks in the global economy. However, some of the professional gold investors are not ready to buy the gold at the current price level since the FED is most likely to hike their interest rate in the month. On the contrary, the aggressive gold traders in the global economy made a decent profit by buying the gold in the event of the weakness of the green bucks. Currently, the price of gold is heading towards critical resistance level and the market is most likely to find selling pressure after hitting 1262.15 markets in the global market. Some of the leading analysts are waiting for the break of that critical resistance level to buy the gold in the market. However, that level is going to provide significant amount selling pressure to the gold and in order to break it, we need a significant weak U.S dollar in the upcoming days. But the green bucks is still broadly supported in the global economy as FED proposed three possible rate hike in the year 2017.

Gold tumbles in the market: The price of gold traded lower in the European session as Mr. Trump again fueled the dollar bulls in the market by stating about increasing the fiscal spending and implementing tax cut policy. According to the Comex division, the price of gold lost near about 0.5 percent in the global economy and traded at 1252.85 a troy ounce. Prior to the recent drop in the gold price the market retested a critical resistance level at 1264.90.Some of the leading economists in the global market are thinking that the gold market might participate in minor bearish retracement in the upcoming days as Mr. Trump is most likely to fuel the dollar bulls in the market for the rest of the part of this week. However, the conservative traders are extremely careful regarding the U.S new administration as no clear direction is not visible so far from the U.S economy. Most of the professional gold investors are currently staying on the sideline and waiting for a better trading opportunity in the market. If the dollar regains its bullish momentum in the global market than we might see a sharp drop in the gold market which might even breach a critical support level. So far the overall gold market sentiment is not clear and the professional traders are waiting for a clearer overview of the U.S administration.

Decent chances of a rate hike by FED: According to the FED rate hike monitor tools there is 30percent chance that the FED will hike their interest rate in the upcoming days. If things continue like this then we might see an end to the bullish rally of the gold market. However, a imminent rate hike by the FED at the current situation will be an extremely tough call from the FED chairperson Janet Yellen since an immature rate hike will significantly weaken the U.S dollar in the global economy. According to the leading gold analysis, the price of gold is now trading near a critical resistance level and in order to break that level, a strong fundamental catalyst is required. From this very statement, it’s very obvious the investors are now cautiously waiting for the next FOMC meeting minutes. If the FED comes up with a dovish statement than the gold price will rally higher in the market penetrating the current resistance level. On the contrary, a clear hawkish hike might bring an end to the recent bullish rally of the gold price in the global economy.

Market sentiment: The precious metal market has been suffering from great level of uncertainty from the very beginning of the year 2017.In the last year, the green bucks lost its strength in the global market prior to the Christmas holiday and brought a strong bullish rally in the gold market. Most importantly the U.S dollar index fell from its 14 years high which also created a strong bullish sentiment in the gold market. Since the price of gold is measured in a dollar a slight variation in the value of the dollar significantly affect the gold market in the longer time frame. Most of the leading economist are thinking that the FED are not yet to ready to hike their interest rate in the upcoming FOMC meeting minute since their current economic performance is still not up to the market. However, the FED will be under the pressure of the central bank to hike their interest rate since the U.S central bank will need to readjust their current inflation rate to stabilize the U.S dollar in the global economy. Considering all the parameters the overall sentiment of the precious metal market is totally unclear and the leading professional suggest to wait in the sideline until the dust settles down in the market.

Summary: There has been a decent bullish rally in the gold market in the last month and currently the price of gold is heading towards major resistance level. Most of the professional traders are cautiously waiting since a hawkish rate hike by the FED in the upcoming FOMC meeting minute will push the price of gold lower in the global market. On the contrary, the newly elected president Donald Trump administration is totally unclear to the professional investors and this has created much more uncertainty in the gold market.