Gold Price Forecast: XAU/USD is on a bullish correction targeting the $3.365 area

LONDON (June 26) Gold’s rebound from Tuesday’s lows suggests that there is a strong support area at the $3,290-$3.300. The precious metal is trimming previous losses on Thursday, buoyed by a more favourable context, with US Treasury yields and the US Dollar tumbling.

The easing geopolitical concerns have undermined demand for the safe-haven Gold this week, but the yellow metal is drawing support on Thursday from US Dollar weakness on the back of increasing concerns about the Federal Reserve's independence.

US President Donald Trump called Fed Chairman an “average mentally person”, after Powell reaffirmed his cautious stance towards further monetary easing, and aired the possibility of announcing his replacement way before the end of his term. The market has seen this move as a clear threat to the bank’s independence, which has brought the “Sell America” trade back to the table.

FXStreet