The local recovery attempts are limited by the $1.1318 level, and the bullion hasn’t recouped the yesterday’s losses yet. While the longer-term prospects for the market still look decent, the immediate risks are pointing to the downside. The precious metal could resume the move, should the Fed hike rates today and signal a possibility of four hikes this year instead of three during the upcoming meeting.
The new Fed governor Jerome Powell can give the markets some hawkish signals, as he did it in February. In this scenario, the greenback will appreciate across the board, which in will turn put gold under a pressure. Meanwhile, the risk of a deeper sell-off in the medium term is rather low as long as spot gold keeps above the March low of $1.302.