- Gold returns gains from the Asian session and hits its lowest in more than a week.
- Negative short-term outlook could change with consolidation above $1,782.
- Major US data ahead and Fed minutes.
The Prayed is falling again on Wednesday, after failing to hold a rebound. XAU/UUSD rallied in the Asian session to $1,782, but then reversed direction and fell to $1,770, the lowest level since Aug 8.
At the moment gold has held above $1770, but that level remains under pressure. Should it break below, further losses would be expected. The next relevant support can be seen in the $1755 area.
The very short-term outlook for the metal remains bearish, following the initial rejection at $1,800 and after losing $1,780 on Monday. In case of a return above $1785, it could go back to being bullish or neutral. A confirmation of the $1,800 breakout would enable further rallies in the short term.
The The yellow metal on Wednesday is being affected by a stronger dollar and rising sovereign bond yields. This even despite the fall in the equity markets in Europe and in the previous Wall Street.
The economic calendar is loaded for Wednesday, with the data of retail sales of the USA and then the minutes of the Federal Reserve from the last FOMC meeting. There will also be more earnings data from retail companies completing the picture of the state of health of the American consumer.
Technical levels
Source: Fx Street
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