- Relatively stable gold pending Federal Reserve decision.
- XAU / USD failed to recover $ 1,860 and remains vulnerable.
The Gold is trading in a range between $ 1,855 and $ 1,860 prior to the Federal Reserve decision. The metal has stabilized but still looks vulnerable. In the last hour it could not be favored by a fall in the yields of Treasury bonds, pressured downwards by a strengthening of the dollar.
Eyes on the Fed
Metals are showing small gains on Wednesday, on a day where everything still seems to be said. At 18:00 GMT, the Fed’s statement will be released, where no new announcements are expected, but the key will be to know what signals they will give in the future.
The recent rise in inflation is one factor that may lead the central bank to say something about it. Until now, it has always been taken as a temporary phenomenon.
In the previous the gold still looks vulnerable. After Monday’s sharp fall where it found support at $ 1,845, the precious metal has failed to reassert itself. The subsequent strong rebound slowed below $ 1,870 and failed to hit $ 1,860 on Wednesday.
Anyway, the next round seems to be dominated by the shock to the Fed meeting. A “dovish” message will tend to push it, while a more “hawkish” tone could put pressure on it. A break at $ 1845 will mean losing an important support.
Technical levels
.
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.
