- Rise of the dollar and fall in the stock markets puts more pressure on metals.
- XAU / USD gives up $ 20 from the recent high.
Gold and silver are falling on Wednesday, prolonging the pullback after climbing to month-highs on Tuesday. The XAU / USD after having risen to $ 1874, is trading at $ 1854, the lowest level in two days, losing 0.68%.
The setback occurs after a strong gold rally, which led the price to raise more than $ 50 in four days. The context of a fall in the stock markets, a slight improvement in the dollar and a rebound in yields favored the decline to accelerate.
The 10-year Treasury bond rate is 1.65%, after having reached 1.66%, the maximum in almost a week. The futures of the main Wall Street indices point to an open with decreases around 0.85%. The dollar index (DXY) is up 0.20%, recovering after having the lowest daily close since January, and is approaching 90.00.
The key event that shows the economic calendar for Wednesday is the minutes of the last meeting of the Federal Reserve, to be published at 18:00 GMT.
From a technical point of view, the next strong support is at $ 1845, which is a strong area that should contain the price. In case of yielding, the gold would be vulnerable and could go to look for the 20-day moving average that is in $ 1808, existing before this a barrier at $ 1830. On the upside, $ 1870 is the level to break to enable more raises.
Technical levels
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