Bullion is feeling weak knees on Wednesday as the dollar recovers across the board. The greenback has found buying interests before the Fed is scheduled to unveil their interest rate decision later today. The rally could be due to a combination of short-covering ahead of this risk event and risk-off sentiment as trade tensions persist. The pressure on the precious metal could intensify if the Fed turned out to be less dovish in their forward guidance.
On the technical side, bullion is testing both 20 and 30-day moving averages. 1298.50 is the immediate support should the price drops lower. The 1311 double top is a major resistance for the rally to resume.
The sentiment-price correlation chart shows the sentiment retreating from the recent top. Daily news sentiment is moving higher and in 80% of the last 10 occurrences price has risen within 8 days.