Gold inched lower on Wednesday, decreasing the price of yellow metal to less than $1225 an ounce after the Yellen’s speech which was monitored closely by gold traders and investors all over the world. The technical bias remains bullish in short to medium term.

Technical Analysis

As of this writing, the precious metal is being traded near $1224 an ounce. A support can be noted around $1221, the trendline support area ahead of $1212, the 50% fib level and then $1200, the psychological number.

On the upside, a hurdle can be noted around $1231, the trendline resistance area ahead of $1237, the high of February 10^th and then $1244, the high of the last major upside rally. The technical bias shall remain bullish as long as the $1200 support area is intact.

Yellen’s Speech

Federal Reserve Chair Janet Yellen said Tuesday that the central bank still expects to raise interest rates gradually this year. But she said the Fed also recognizes the dangers of waiting too long to tighten credit. Testifying to Congress for the first time since President Donald Trump took office, Yellen referred implicitly to the ambitious economic program Trump has promised. She said the Fed recognizes that sharp changes in tax policy and government spending could influence the central bank’s decisions.But she says “it’s too early to know what policy changes will be put in place or how their economic effects will unfold.”

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.