- The price of gold is under pressure after the US data and before the FOMC meeting.
- The XAU / USD breaks the short-term support at $ 1,780.
- The US dollar remains in recent ranges against most of its rivals.
The prices of the oro (XAU / USD) they are under pressure on Tuesday following the release of the US data and ahead of the Federal Reserve decision. Yellow metal broke below the $ 1,780 support and fell to $ 1,766, reaching the lowest level since December 3.
From the lows, XAU / USD rallied to highs of $ 1,777 and at the time of writing it is moving towards $ 1,770, still facing negative momentum. The decline began after the release of US PPI numbers That sent US yields higher.
The 10-year US bond went from 1.44% to 1.47% and the 30-year bond to 1.86% from 1.82%. The movement in the bond market weakened gold. At the same time, the dollar gained momentum but posted limited gains. The USD remains in negative territory on the day against most of its main rivals, although it is moving within the recent range.
Market participants await the outcome of the FOMC meeting. On Wednesday the central bank will announce its decision on monetary policy. The central bank is expected to announce a more rapid reduction in its bond purchase program.
From a technical perspective, the XAU / USD is still under pressure. A rally above $ 1,780 would ease the pressure. The next support is at $ 1,760, followed by $ 1,745. From a broader perspective, $ 1,795 is the critical resistance. A daily close clearly above this level should open the doors to a recovery above $ 1,800.
Gold technical levels
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