Gold fell sharply following the hawkish comments from the Fed Chair Powell. Strategists at TD Securities note that the yellow metal could suffer additional losses on a dip below the $1,806 mark.

Higher for longer narrative in rates to put more pressure on key support levels

“While central banks and physical flows have been of keen importance, and have offered support to Gold, the higher for longer narrative in rates is likely to put more pressure on key support levels.”

“A potential break below the $1,806 level would serve as the next trigger to see trend followers modestly reduce their positions.”