- Gold’s reversal from the $1,660 high has extended to test the $1,645 support.
- Precious metals lose ground with all eyes on the FOMC.
- XAU/USD: Under bearish pressure with a double top in place — Credit Suisse.
The bearish reversal in gold futures from session highs at $1,660, it has picked up pace during Wednesday morning in the US, and the pair to test the $1,645 support area at time of writing. On the daily chart, the yellow metal is virtually unchanged.
Precious metals lose ground ahead of FOMC
Precious metals have generally tanked on Wednesday, after rising sharply on Tuesday. Investors are awaiting the outcome of the Federal Reserve’s monetary policy meeting, scheduled for today.
The market has already priced in a 75 basis point hike, the fourth in a row from the US central bank, although the main event will be the release of the monetary policy statement.
Speculation about a sign of softer gains from December has increased in recent weeks, and the market is divided on the size of the next move. Since the market is extremely sensitive to the Fed’s guidance, any hint could trigger huge volatility.
XAU/USD: Under renewed bearish pressure with a double top in place — Credit Suisse
Credit Suisse analysts see short-term risk skewed to the downside while below $1,687: “Gold below $1,691/76 has reinforced its existing large ‘double top’. So with a cap in place, we expect XAU/USD to come under further pressure, we see next support seen at $1,614, then $1,560, and finally our main target at $1,451/$40.”
Technical levels to watch
|last price today||1647.01|
|today daily change||-1.00|
|Today’s daily change %||-0.06|
|Daily opening today||1648.01|
|Previous daily high||1657.07|
|Previous Daily Low||1630.77|
|Previous Weekly High||1674.96|
|Previous Weekly Low||1638.09|
|Previous Monthly High||1729.58|
|Previous Monthly Low||1617.35|
|Daily Fibonacci of 38.2%.||1647.02|
|Fibonacci 61.8% daily||1640.82|
|Daily Pivot Point S1||1633.5|
|Daily Pivot Point S2||1618.98|
|Daily Pivot Point S3||1607.2|
|Daily Pivot Point R1||1659.8|
|Daily Pivot Point R2||1671.58|
|Daily Pivot Point R3||1686.1|
Source: Fx Street