VOT Research Desk
In the Tokyo session, the price of gold (XAU/USD) declined to close to $1,787.00 after failing to hold near the crucial resistance level of $1,805.00.
The precious metal has entered a bearish trend as investors become uneasy due to the Federal Reserve’s (Fed) policy outlook uncertainty.
After the release of the better-than-expected employment report and the demand in the service sector for the month of November, new developments in the United States’ economic prospects suggested that the Fed might continue the current pace of interest rate hikes to counteract new evidence indicating a rebound in inflation or may provide higher interest rate guidance.
Policymakers at the Fed cautioned, however, that the continuation of a larger rate raise regime could exacerbate financial vulnerabilities in the US economy.
In the meantime, the US Dollar Index (DXY) struggles to rise beyond the 105.20 immediate resistance.
