Gold pulls back from multi-year high after New York Fed’s statements

• The Federal Reserve Bank of New York tried safeguarding the President Williams earlier dovish comments.
• The USD is on the run-up to recover some of the previous losses due to the Fed speaker’s signals to rate cut.

With the US Dollar (USD) taking some of the pips back from bears, the Gold drops off the May 2013 high while trading near $1443 amid initial Asian session on Friday.

The bullion surged the previous day after the key Federal Reserve officials, including the New York Fed John Williams and Vice Chairman Richard Clarida, brightened chances of a 50 basis points (bps) cut in the Fed’s benchmark rate during the July 31 monetary policy meeting.

However, sellers sneaked in around the multi-year top after the New York Fed said that the President Williams’ speech was not about potential policy actions.

Though, the prices are yet to register a slump as geopolitical plays surrounding the US and Iran, coupled with the US-China trade stalemate, remain in the spotlight.

Given the absence of major data, except the Michigan Consumer Sentiment Index, investors may keep following news headlines for fresh impulse.

Technical Analysis

May 2013 top surrounding $1,488/90, followed by $1,500 round-figure, can lure buyers during the yellow metal’s fresh rise beyond recent highs of $1,453, failure to do so could recall $1,430 and 21-day simple moving average (SMA) level of %1,413 back to the chart.