- The dollar gains momentum after US data and before the Fed.
- XAU / USD loses key supports and plummets to two-week lows.
- Meeting of the Fed implies a high possibility that volatility will continue at extreme levels.
XAU / USD broke below $ 1780 and then $ 1770 to reach $ 1760, the lowest in two weeks. The drop was driven by a general rise in the dollar and a rise in Treasury bond yields as a key factor. High volatility should continue due to the Federal Reserve meeting.
Mixed dollar, metals down
Metals are falling hard on Wednesday. Better-than-expected data from the US (private employment from ADP and the services sector) gave strength to the greenback, especially against the yen, the euro and emerging markets.
The XAG / USD pierde 1.91% and the XAU/USD 1.42%, spreading weekly losses. In the case of gold, a confirmation at current levels will imply a significant deterioration in the outlook ahead. While a return above $ 1780 would put some bullish bias on the XAU / USD again.
The events ahead practically guarantee that volatility will remain at very high levels and that the day is far from over. This implies that any scenario is still possible, from a large reversal to an extension of the decline.
Technical levels
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