Gold extends Friday’s losses, eyes Fed speak

Gold is extending Friday’s losses in Asia as hawkish Fed speak is driving investors out of precious metal and equities and into US dollar.  

Trending 0.34% lower on the day, the precious metal sees further risk ahead in the form of additional Fed member speeches today. Gold continues to trade around its low at $1329.45, having plotted a daily high at $1333.

Eyes Brainard speech

Fed’s Brainard, a dove, is scheduled to speak later today. This is the last Fed speech before next week’s rate decision. Markets fear that Brainard speech has been hurriedly scheduled by the Fed as the central banks wants to prepare markets for the next rate hike.

It remains to be seen if the policy makers comes out hawkish, but if she does, metal could take a hit.

Gold Technical Levels

Acceptance below $1328 (Friday’s low) would open doors for a drop to $1323.20 (Sep 6 low). On the higher side, a breach of resistance at $1333 (Asian session high) would open doors for $1338.50 (Friday’s high).