- Gold is moving sideways with a bearish bias awaiting the FOMC.
- Volatility is likely to jump on the Fed statement.
- XAU / USD looks to December lows, everything can change drastically.
Gold is falling on Wednesday, ahead of the Federal Reserve decision. The pair recently bottomed out at $ 1,763, the lowest level since December 3, and then rallied towards $ 1,770. The price is moving sideways with a bearish bias.
The November US Retail Sales Report was below expectations, boosting gold for a few minutes. After hitting $ 1,774, it turned lower amid a stronger US dollar during the American session.
The risk-off environment kept US yields in check and offered some support for the yellow metal. What the Fed decides and what Powell says will have a big impact on the Treasury market, therefore on gold prices. The statement will be released at 19:00 GMT, including projections from FOMC members.
Levels to look for after the Fed
Gold has been moving sideways since December and has settled at critical levels. On the upside is the area around $ 1790 / $ 95, a horizontal line, and also close to the 20 and 200 day moving averages. A firm break above and confirmation should clear the way for further gains above $ 1800.
On the other hand, $ 1765 is a key level that should lead to further losses if it breaks out on a sustained basis, targeting $ 1745/50. Below, the next support is at $ 1730.
Volatility and exaggerated moves are likely during the FOMC announcement and later during Powell’s press conference.
Technical levels
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