- Metals continue downhill at the Fed’s start to the week.
- XAU / USD tests levels below $ 1855, at a low in almost a month.
Gold is falling significantly for the second day in a row and has just scored a new low since May 19 at $ 1,853. The decline comes after the price failed to assert above $ 1,900, which was then followed by a major reversal.
The fall in gold is putting pressure on silver. XAG / USD falls, but less significantly and is trading at a four-day low at $ 27.70. Metals remain clearly bearish in the short term and continue to seek support.
This week the meeting of the Federal Reserve. The possibility of some mention of a cut in the buying program contributed to the pressure on metals. In turn, last week the sharp drop in Treasury yields did not boost gold enough, already showing signs of some weakness.
Volatility is expected to remain high, considering the recent drop in a few sessions of almost $ 50. The yellow metal could have the lowest daily close in a month on Monday, confirming bearish signals. The next strong support below $ 1855 can be seen at $ 1845.