- Gold rebounded after falling as low as $1914, the lowest level in a week.
- Strong rise in Treasury bond yields limits the advance of the metal.
- Key fact of the day: Federal Reserve minutes.
XAU/USD fell to $1914 and then bounced back almost $20 higher to $1933. It is trading around $1925, with no clear direction. The rise in Treasury bond yields continues and affects gold.
On Tuesday, Federal Reserve Governor Lael Brainard’s comments on a rapid unwinding of the Federal Reserve balance sheetgenerated a drop in Treasury bonds, which continues on Wednesday. The 10-year rate is at 2.66%, a new maximum in years and the 30-year one at 2.67%, the highest level since May 2019. This rise in yields negatively affects gold and by drag also silver.
The key event of the day regarding the economic calendar will be in the afternoon, with the publication of the minutes of the last FOMC meeting, when the Federal Reserve raised the benchmark interest rate. Before that, the president of the Philadelphia Fed will talk about the economic outlook in the morning of the American session.
Still sideways, with downside risk
XAU/USD has been moving sideways around $1,930 for almost a week, unable to break above $1,945 and finding support at $1,915. The risks seem skewed to the downside, although only a confirmation below $1915 would enable further declines, with a possible initial target in the $1900 zone. Below the next support can be seen in the $1890 area.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
