The gold price has come under pressure today, giving up yesterday’s gains as a US Federal Reserve board member signaled that a rate hike was just around the corner.

Federal Reserve of Chicago President Charles Evans noted in a speech in Sydney on Tuesday that the U.S. economy is moving forward and that a December rate hike “could be fine.” sparking a jump in the US dollar and a selloff in gold.

Gold again meets tough 200 day moving average resistance at 1258/59. The 1264/65 level is again likely to prove more of a challenge. On further gains look for a selling opportunity at 1272/73.

Failure to beat tough 200 day moving average resistance at 1258/59 targets support at 1250/49. However this is only minor now and below re-targets last week's low at 1241/40. A break lower this week not out of the question with the outlook more negative. Initially we target 1235/34 then 1230/29.

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