Gold is decreasing in price in anticipation of the FRS decision on rates.
On Tuesday, gold was pressured by strong data on the consumer confidence index in the US as well as data on the number of orders for durable goods. The USD index updated a maximum of more than 8 weeks, making gold more expensive for investors whose capital is concentrated in other currencies.
Strong macroeconomic data from the United States significantly reduces the likelihood that in the near future the FRS may resume an easing cycle of monetary policy. Today, the FRS meeting is the key event of the day for the financial market. Most experts agree that the regulator will leave interest rates unchanged and will adhere to neutral rhetoric, alluding to maintaining the current level of rates for a sufficiently long period of time.
Before the FRS meeting, Donald Trump once again tried to put verbal pressure on the participants of the meeting. The American president called on the Federal Reserve to lower rates in order to increase the competitiveness of American goods in the foreign markets.
Regarding the chart, bearish signals prevail locally. Bulls could not keep the price above the level of 1567.85. From this mark, we can expect further development of the correctional movement in the direction of the level of 1550.00.
Resistance Levels: 1570.00, 1585.00, 1600.00;
Support Levels: 1558.00, 1550.00, 1542.00.
The main scenario - a decline towards the level of 1550.00.
An alternative scenario - a breakdown of resistance at the level of 1570.00 and an increase towards 1585.00.
The fundamental outlook is moderately negative. The chart is dominated by bearish signals. Within the daily framework, we consider shorts from the level of 1570.00.
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