XAU / USD regains ground from 3-day lows ahead of key events

• Gold manages to recover $ 1780, volatility is expected ahead.
• Coming from ADP employment data, service sector data and Fed meeting.
• The dollar without clear direction, maintains part of the gains of Tuesday.

The oro It fell hours ago to $ 1,778, the lowest level since Friday before bouncing higher. The price of the ounce is at $ 1784.30, the highest level since Asian hours. The market focus is on US data and what the Federal Reserve will say.

The XAU / USD is falling for the second day in a row although it has managed to regain the $ 1,780 zone. In any case, great volatility is expected in the coming hours.

First the ADP private employment report will arrive at 12:15 GMT, which will serve as a precursor to Friday’s official employment report (non-farm payrolls and unemployment rate), then at 13:45 GMT the Markit PMI of services and at 14:00 GMT the ISM for services and the factory orders report.

In the American afternoon the most relevant a priori will arrive, with the Fed decision. There will be no change in interest rates, but an announcement could be made about a cut in the purchasing program. The statement and the US central bank president’s conference are expected to keep financial market prices on the move.

In the case of XAU / USD, a close below $ 1780 would reinforce the current bearish tone. Another key level to the downside is $ 1770, and a claim below that would pave the way for further losses. If it manages to hold above $ 1785, gold would retain a strong support, to go to test $ 1800 again. Above the intermediate resistances are seen at $ 1810 and $ 1820, before the strong medium-term level around $ 1833.

Technical levels