Federal Reserve chairman Jerome Powell put a damper on gold’s incipient rally last week when he said that the Fed would remain tighter for long and was not yet “sufficiently restrictive”. Gold had closed the night before over $1,800, and had arguably been ahead of itself, anticipating a dovish Powell. Gold had come to life after a weaker-than-expected inflation report earlier in the week. But it is only a matter of time before it breaks out above it again.

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