- The dollar gains momentum after the start of the American session and after data.
- Gold under bearish pressure, but everything can change with the Fed.
- Market expectant for the central bank’s decision, without ruling out surprises.
The Prayed it is falling on Wednesday before the decision of the Federal Reserve is known, due to a strengthening of the dollar in the market. The value of the ounce fell to $1711, marking the lowest level in six days.
The sThe short-term risk of gold remains bearish, but it is expected that the decision of the Federal Reserve will generate strong movements throughout the market.
The dollar began to recover positions after the report of requests for durable goods. In any case, the markets in general continue to move sideways, with the focus on the US central bank.
The Fed’s decision will be known at 18:00 GMT. Thirty minutes later, Jerome Powell will give a press conference. A rise in the Fed Funds interest rate of 75 basis points is expected. A surprise can bring great movement. If there are no surprises, the impact could come from the Fed’s forward guidance.
Gold could be affected in either direction. A confirmation below $1,700 would expose the 2021 bottom at $1,675, critical support. On the upside, $1,740 appears as an important level since it contains the 20-day moving average. Then comes $1,750, which if broken would give gold significant support.
Technical levels
Source: Fx Street
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