- The decision and the statement from the Federal Reserve are awaited.
- Gold slightly bearish on Wednesday, but validating previous gains.
- Price begins to assert itself over $1800.
Gold is falling modestly on Wednesday, hitting a daily low of $1806 and failing to break above $1815. It is holding onto some of the rally from Tuesday when it spiked after the US inflation data. The focus now is on the Federal Reserve.
Calm before more volatility
On Tuesday, the US inflation data below expectations, pulled down the US dollar and sent metals up. The decline in Treasury yields led the XAU/USD to $1,824, the highest since the end of June this year. The yellow metal then eased higher to close around $1810. Before the data it was trading at $1789.
Despite the $15+ Retracement from the Peak, Gold Retains Much of the Gains and a bullish tone. Next resistance is at $1815, followed by the $1830 area. In the opposite direction, now $1,795/$1,800 is relevant support which, if it yields, will take out bullish strength.
For hours the price of the XAU/USD has been moving sideways, with limited ranges. This could change radically considering that on the afternoon of the American session the decision of the Federal Reserve. A rise of 50 basis points is expected. In addition, new projections will be released and Powell will give a press conference. What the US central bank says can have a big impact on metals. There will be a host of events on Thursday that may cause volatility to continue.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
