Spot gold has been sliding to a $1,196 low in early Asia on the back of very late NY session comments from Fed’s chair Powell who sent the dollar onto the 96 handle with hawkish rhetoric after a US session that printed strong US economic data once again. Gold currently trades at $1,197 having made a high of $1,208.52 and a low of $1,196.55. Comments from Powell have sparked a broad-based bid in the rally and they came as follows: Fed’s Powell: U.S. economy ‘remarkably positive’ Fed’s Powell: May raise rates past ‘neutral’ Fed’s Powell: Not really seen any impact yet from trade disputes “The U.S. 10-year traded as high as 3.18 percent on Wednesday, the highest in seven years, spurred by the surging U.S. economy and a determined Fed. Treasury rates are entering the range of consequence, where higher interest costs will begin to have an economic impact,” Joseph Trevisani, Senior Analyst at FXStreet explained who commented earlier on the US data saying, “healthy growth in ADP employment will keep expectations intact for a robust September employment report on Friday with expectations reaching beyond the 188,000 consensus forecast, and, “”Record levels of business optimism combined with the very strong ADP report, point to a further acceleration in the already robust job market in Friday’s payroll report.” US economic divergence to underpin the dollar The US economy is performing streaks ahead of China, the Eurozone, UK and the Antipodes. As such, the dollar can continue higher and trade wars are likely to continue to underpin its strength. Similarly, investors are likely to be attracted to rising US yields and in a world of political as well as economic uncertainty, it is the dollar and dollar-denominated assets that will attract the most demand and investors idle cash – mixed with a hawkish Fed, that is a recipe for lower gold. Gold levels The technicals lean bearish with a bearish bias on the RSIs. Gold bears are back in the picture with eyes on the 61.8% Fibo at 1180 and the 76.4% Fibo at 1172 – (These Fibos are taken of the early Aug 1159 lows to 27th August 1214 highs). $1,160 was the start of the retracement back on 15th August – 2018 low, (lowest since Dec 2016 prices). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Market moving key US data reviewed – Nomura FX Street 4 years Spot gold has been sliding to a $1,196 low in early Asia on the back of very late NY session comments from Fed's chair Powell who sent the dollar onto the 96 handle with hawkish rhetoric after a US session that printed strong US economic data once again. Gold currently trades at $1,197 having made a high of $1,208.52 and a low of $1,196.55. Comments from Powell have sparked a broad-based bid in the rally and they came as follows: Fed's Powell: U.S. economy 'remarkably positive' Fed's Powell: May raise rates past 'neutral' Fed's Powell: Not really seen any impact… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.