Gold prices have been under pressure over the last couple of days, ever since the Fed announced the rate hike on Wednesday. Though there was a brief while on that day when it appeared that the Fed might hold back and wait to see some more incoming data, especially considering the weak CPI and Retail Sales data that came in on that day, the rate hike was very much on the cards and the Fed did not disappoint.
We expect the 1248 region to lend some strong support and even if it breaks, then we see the next support coming in at the 1220 region which could be the short term target for the bears. This region has held off several attempts to break through and we may see another attempt at this region in the short term. The bulls are fried for now and the buyers would do well to stay well clear.Link