Gold declines on Wednesday against the backdrop of a strengthening dollar and a fairly strong rise in the yield of US Treasuries.
The yield on 10-year US government bonds reached 1.641% today, against a weekly low of 1.558%. The Asian dollar index rose by 0.1%. The recovery of these instruments is taking place against the backdrop of speculation about the possible outcome of the FOMC meeting.
The market with 100% probability expects the current parameters of monetary policy to remain unchanged. Of greatest interest to the market are comments and signals from the FRS regarding further plans to adjust monetary policy in the event of an improvement in the situation on the labor market, economy and growth of inflationary pressure. Hints at a possible earlier withdrawal of stimulus measures could lead to a significant strengthening of the dollar. For gold, this will be a strong bearish signal.
Also, investors today will follow the address of US President Joe Biden to the joint meeting of Congress to learn about the further implementation of stimulus measures.
On the chart, the price remains in the horizontal channel 1766.00-1795.00, but the bears are now increasing pressure on the lower boundary of the sideways trend. With a very high probability, we can expect a breakdown of support and the development of a downward movement in the direction of the level of 1747.00.
The main scenario is a breakdown of the support at 1766.00 and a decline in the direction of 1747.00.
Alternative scenario - growth from current levels to 1795.00.
The current fundamental background is negative. We consider shorts from the level of 1780.00.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications