XAU / USD loses steam after failing to exceed $ 1780, focus is on Fed

• Gold remains far from recent lows, but the recovery is losing steam.
• The focus is on the decision of the Federal Reserve on Wednesday in the American afternoon.

The Gold is trading unchanged on Wednesday, a key day for the markets. The price of the ounce is in the area of ​​$ 1,775, where it closed on Tuesday, after failing to exceed $ 1,780.

The recovery from Monday’s monthly low just above $ 1740 was held back by the $ 1780 resistance.. The precious metal was weakened, although the downward correction has been limited for the time being.

Prices across the financial and currency markets show various range runs. There is a lack of definition regarding what will be the decision and the communication of the Federal Reserve. At 18:00 GMT the FOMC will publish the statement and then it will be the turn of the press conference.

Changes in the interest rate are not expected. The focus will be on what is said about the purchasing program and on the macroeconomic projections of the officials. These events will have a high impact on the bond market and therefore also on gold.

The impact on XAU/USD It could be positive if the bonds go up, but at the same time it will also be necessary to consider what the dollar does in the market, since if it appreciates, it will be a negative factor for the metal.

If it cannot exceed $ 1780, the weakness should persist, while if it rises above then the recovery could extend towards $ 1795. In the opposite direction, at $ 1767 is the first major support, followed by $ 1756. A confirmation below $ 1745 will point to more weakness ahead.

Technical levels