• Volatile session for metals as the US Dollar remains steady.
• After spiking to the highest level since June 23, XAU/USD turned to the downside.
• Gold is losing momentum, and the reversal could expose $1,900.

The price of Gold surged to $1,935/oz, reaching the highest level since June 23. However, it quickly reversed course and turned lower. XAU/USD dropped to $1,919, hitting a fresh daily low. 

The yellow metal climbed to weekly highs and then fell to daily lows in just a few minutes, losing almost $20. Volatility remains elevated, with the price struggling to hold above $1,920. If the price manages to remain above $1,930, the outlook would improve for the bulls. On the contrary, if the price consolidates under $1,920, more losses seem likely. The next support area is seen around $1,910.

Attention on FOMC minutes and US data

Economic data from the US showed Factory Orders in May rose by 0.3%, below the 0.8% expected by the markets. On Thursday, key labor market data is due, including the ADP report, Jobless Claims, and JOLTS. On Friday, it will be the turn of the Nonfarm Payroll report.

Later on Wednesday, at 18:00 GMT, the Federal Reserve will release the minutes of its June meeting, when it decided to hold rates steady for the first time in the tightening cycle. The minutes could show a hawkish bias in the discussion. Since the meeting, Chair Powell and other officials have repeated that the forecasts are for more rate hikes before year-end.

The minutes and the job figures will likely cause volatility across financial markets and will play a key role in shaping Fed monetary policy expectations. If markets see a more hawkish tone from the Fed, it could send US yields higher and weigh on Gold. On the contrary, weak data could be positive for the yellow metal.

Technical levels