Gold Sells Off After Rate Hike Rumors

Gold price fell below $1,250 today in the early European trading hours after the Federal Reserve raised expectations for a March US interest hike rate. Gold reacted bearishly to the statement and fell to a low of $1,242 earlier today.

Now the precious metal is trading at $1,245 as market sentiment is turning from bullish to bearish.

Technically speaking, Gold was not able to overcome the 200SMA and the falling has been going on since Monday when it reached $1,263.

Major bear target on the short-term is seen at $1,230, while the bulls target the levels around $1,260 and above in order for them to continue on their path.

Chart: XAU/USD H4