Metals recovered strength during the American session and ahead of the FOMC decision. Gold prices bounced sharply from weekly lows back above $1770. The yellow metal awaits Powell with a positive intraday tone.
XAU/USD bottomed earlier on Wednesday at $1762, the lowest level since April 15. It then rebounded and recently climbed to $1775, erasing daily losses. The move higher took place amid a retreat of the US dollar.
Although we tend to focus more on the fundamentals here at Money Metals, the technical indicators can offer important insights. Such as right now.
Many traders, investors, and momentum players will closely examine the market trend to determine if and when to enter or exit the market.
A market with a strong technical foundation can launch to dizzying heights, while a market displaying weak technicals will have a tough time putting together any sustainable upside.
