- Treasury bond yields slow rebound and support gold.
- The dollar with a mixed performance ahead of data and the start of the Fed meeting.
The Gold is trading in negative territory on Tuesday, around $ 1,865, after having traded below $ 1,860 in the Asian session and very close to $ 1,870 in the European session. The price moves without a clear direction, in anticipation of important events.
On Monday the XAU / USD tumbled to $ 1,844, but then bounced strongly towards $ 1,870. It now appears to be stabilizing although this could be temporary, considering that the two-day meeting of the Federal Reserve. No changes in monetary policy are expected. The expectation is set on what kind of mention is made about the possibility of a cut in the purchasing program.
Prior to the release of the Fed on Wednesday, Important data will be released on Tuesday with the release of retail sales and wholesale inflation figures. These figures may generate noise about the market, but they are not expected to define the direction and volatility will continue.
From a technical point of view, to the upside, the gold resistance zone is seen at $ 1870, followed by $ 1875 and $ 1885. In the opposite direction, a return under $ 1,855, it will expose the $ 1,845 support. The latter is key and if it yields, it would leave gold vulnerable to further losses..
Technical levels
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