Gold prices were seen posting strong declines over the week.

Following up to last weekly report’s technical analysis, gold prices fell from the highs around 1357 to trade close to the 1325 levels.

The declines in gold prices came about amid a broad based strength in the U.S. dollar. The USD was bid higher as investors digested the FOMC meeting minutes.

The meeting minutes showed that Fed officials were optimistic on the economy and hoped that inflation will start to rise soon.

The hawkish minutes added to the speculation that interest rates in the U.S. will rise at the March Fed meeting under the leadership of Jerome Powell.

The stronger USD also saw most of the commodity prices falling as a result.

Technical Analysis on “Gold vs USD”

From a technical perspective, we expect to see gold prices continuing to post declines even further.

The reversal near the resistance leve of 1357 indicates further downside in price action.

While gold prices continue to remain in a consolidation phase forming the rising wedge pattern, the declines could stall near the support level formed at 1303 initially.

This marks the previous high from October 13th 2017.

A break down below this level could expose gold prices to the lower support level near 1282 – 1274 region.

Establishing support on this level which previously served as resistance could potentially halt the downside correction and could come ahead of a new rally in gold prices.