- Gold jumps due to dollar weakness, unable to break key level.
- XAU/USD remains in the area of $1,680 and $1,655.
- The dollar weakens after intervention by Japan.
The Prayed regained ground and rose from $1,655 to $1,678, marking a new daily high. After failing to break the $1,680 barrier he cut profits and trades at $1,667, still within a familiar range.
Away from the shine, into the range
On Wednesday, the Federal Reserve raised the benchmark interest rate by 75 basis points. Initially, gold pointed higher, but after reaching levels above $1680, it reversed direction. The pullback extended to $1,655, just above this year’s low.
After learning of the intervention in the foreign exchange market by Japanese authorities to limit the weakness of the yen. This brought down the dollar and pushed XAU/USD higher to $1678. This jump is being partially reversed and the metal trades at $1665, remaining within the range between $1680 and $1655.
Interest rate hikes and harsh messages from central banks, plus the strength of the dollar continue to leave gold fundamentally weak. Treasury bond yields remain near their highest in years.
In minutes the decision of the Bank of England and then the weekly report of requests for unemployment benefits in the US will come out.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
