- Gold maintains the rebound from lows in weeks, supports the lower strength of the dollar.
- The Federal Reserve meeting begins, the decision on Wednesday.
The Gold is in positive territory on Tuesday, trying to extend the rebound that began in the Asian session on Monday. It recently reached $ 1768, the highest since last Thursday, but still could not get past the resistance zone around $ 1767. Previously on Tuesday it had fallen to $ 1,757.
The rise in gold occurs despite a modest rise in Treasury bond yields, and is mainly supported by the weakness of the dollar. The dollar index (DXY) is falling for the second day in a row, approaching 93.00, after hitting a month-long high on Monday at 93.45. Another positive factor is the rise in equity markets.
Analysts and operators closely follow the situation from China with the real estate giant Evergrande. The focus on Tuesday also begins to focus on what will be the decision of the Wednesday Federal Reserve. Today begins the two-day meeting of the FOMC. Interest rate changes are not expected, but there may be announcements about the purchase program. What the Fed announces is expected to have a wide impact on markets, including gold and the dollar.
On Tuesday the economic calendar shows as notable data the report of the start of housing and the current account data. These are not expected to have a high impact.
On the technical side, the XAU / USD has a very short-term bullish moment, but it will need to move past $ 1767 to enable more rallies. In the opposite direction, a drop below $ 1745 will put the metal under pressure again, in line with the dominant trend.
Technical levels
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