FUNDAMENTALOVERVIEWGold has extended the losses this week as the fallout from the hawkish Feddecision continues to push real yields and the US dollar higher. We haven’t gotany meaningful catalysts since FOMC, so the markets continue to run by inertia.As a reminder, the Fed delivered a hawkish surprise by projecting a ratehike this year (the consensus was for no cuts or hikes). The market increasedrate hike bets with now 42 bps of tightening priced in by year-end. There's a 36%chance of a hike already in July and 72% probability of a move in September.The economic data and financial markets will now guide the Fed as Warshstated that “financial markets perform best when they react to incoming dataand are less efficient when they have to ask how the Federal Reserve will reactto the incoming data”. He added that “financial markets are the most importantsource of information to guide the central bank”.Trump also posted on Truth Social and, unlike his usual stance under FedChair Powell, did not object to the Fed’s decision. In fact, he said that “ratehikes could happen,” which sounds like a green light for Warsh and the Fed todo whatever they deem necessary.The signal is that the Fed is finally looking to deliver on its pricestability mandate and bring inflation back to the 2% target that it’s beenmissing since 2021. If the data says they need to hike, they will. Thisshould keep weighing on gold at least until the next set of economic data. For a decent pullback, gold will need soft US data in the next weeks to trigger a dovish repricing that pushes real yields and the US dollar lower.GOLD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that gold extended the fall this week and continues to target the 3,885level. If the price gets there, we can expect the buyers to step in with adefined risk below the level to position for a rally into the major downwardtrendline. The sellers, on the other hand, will look for a break to increasethe bearish bets into the 3,500 level next.GOLD TECHNICAL ANALYSIS – 4HOUR TIMEFRAMEOn the 4 hour chart, we havea downward trendline defining the bearish momentum. If we get a pullback intothe trendline, we can expect the sellers to lean on it with a defined riskabove it to keep pushing into new lows. The buyers, on the other hand, willwant to see the price breaking higher to increase the bullish bets into the4,600 level next. The pullback into the trendline might need soft US data inthe next few weeks as that should trigger a dovish repricing leading to a dropin real yields and the US dollar.GOLD TECHNICAL ANALYSIS – 1HOUR TIMEFRAMEOn the 1 hour chart, wehave a minor downward trendline. The sellers will likely continue to lean on itwith a defined risk above it to keep pushing into new lows. The buyers, on theother hand, will want to see the price breaking higher to pile in for apullback into the 4,200 level next. The red lines define the average daily range for today. UPCOMING CATALYSTSTomorrow, we get the USJobless Claims data and the US PCE report. On Friday, we conclude the week withthe final University of Michigan consumer sentiment survey. This article was written by Giuseppe Dellamotta at investinglive.com.