Gold price increases, as traders anticipate the upcoming FOMC Statement and possible announcement of the new Fed Chair.
Due to escalation of the Catalan crisis, demand for the yellow metal increased and the pair returned back to the weekly PP near 1,274.00.
Due to ECB meeting, the Dollar appreciated against all major currencies, including the yellow metal yesterday.
Wednesday's trading session resulted in a breakout of the exchange rate from the falling wedge pattern.
The yellow metal is trading against the buck in recently formed falling wedge formation.
After the continuation of the decline of the bullion's price a rebound occurred on Tuesday morning.
In result of Shinzo Abe's confident victory, the Dollar strengthened against all major currencies, including the yellow metal.
Due to uneasy situation on the Iberian Peninsula, the yellow metal surged to the 1,290.50 level but then was forced to retreat by the 100- and 200-hour SMAs.
In result of the three-day fall, the exchange rate formed a falling wedge and made a breakout from it using the 61.8% Fibonacci retracement level, as a trampoline.
In result of the previous trading session, the exchange rate slipped not only through the 200-hour SMA, the weekly PP but also through the bottom boundary of an ascending channel.
In result of the previous trading session, the exchange rate made a breakout from the rising wedge formation.
In result of release of unfavourable inflation data, the bullion continued to rally against the buck.
Despite a release of better than expected data on the US Core PPI, the yellow metal continued to appreciate against the buck.
Due to uncertainty expressed by some of the FOMC members, the yellow metal continued to gain value against the buck.
Continuous escalation of the North Korean crisis drove the pair towards the weekly R2 at 1,294.86 yesterday.
Due to continuous fears related to possible escalation of the North Korean crisis as well as some other fundamental factors, the gold continued to gain value against the buck yesterday.
An escalation of the North Korean crisis forced traders to actively transfer their funds into yellow metal, thus defusing the effect from surprising release of information about the US labour market.
In result of a rebound which matched with a speech delivered by Governor Powell, the plunged to the weekly S1 at 1,266.63.
Despite positive news about the US non-manufacturing activity, a combination of the 55-hour SMA and the 100-day SMA managed to constrain appreciation of the buck against the gold.
Rising concerns over the Janet Yellen's resignation from the Fed Chair post enabled gold traders to restore some positions against the buck and even break from dominant descending channel.
A release of better than expected information about the US manufacturing activity allowed the pair to successfully cross the 100-day SMA.
Due to fundamental reasons the pair made a sharp turn around and began falling to the south, crossing the 61.8% Fibonacci retracement level near 1,278.95.
In result of a rebound from the 61.8% Fibonacci retracement level at 1,278.96 the gold started to recover against the buck.
In result of a two day downfall, the pair encountered the another significant support level set up by the 61.8% Fibonacci retracement level at 1,278.96.