fundamental News - XAUUSD

Gold prices were volatile in the US session on the back of the China Evergrande risks fading over the horizon and the Federal Reserve turning more hawkish. Evergrande agreed to settle interest payments on a domestic bond on Wednesday. This has calmed contagion risks in the bond and stock markets.

The Chinese central bank also injected cash into the banking system, temporarily soothing fears of imminent contagion from the debt-laden property developer. However, $300 billion in liabilities is owed to countless banks, lenders, retail investors and suppliers. This means any impact would be complex and uncertain. There has been no mention of its plans for another bond payment on Thursday and one next week. The situation remains fluid.

Meanwhile, the US dollar was seen as a good pick up opportunity as the dust started to settle and markets came into line with a more hawkish tilt at the Fed. November has been marked as the most likely month for which tapering will begin. There is even a 50% chance that a rate hike might come sooner than expected in 2022.

The price of gold has been volatile on Wednesday following the Federal Reserve's interest rate decision that has just been released.

XAU/USD has rallied to a fresh high of $1,786.87 in a 1% move between $1,769 and $1,787.87 so far. The FOMC statement gives rise to an imminent taper announcement.

Technical analysis
Gold price failed to break above into the bullish zone which is define by the 200-SMA at $1,785.20 on the 4-hourly chart.
Bearish zone range of resistance $1,785.20 to $1,745.00.
Bullish zone range of $1,785.20 to $1,835.00.

expectation today: bearish