Gold Price Forecast: XAU/USD, under growing pressure, testing support at $1,645

• Gold's reversal from $1,660 high has extended to test support at $1,645. 
• Precious metals lose footing with all eyes on the FOMC.
• XAU/USD: Under bearish pressure with a double top in place – Credit Suisse.

Gold futures’ bearish reversal from session highs at $1.660, has gathered pace during Wednesday’s US morning trading, and the pair to test support area at $1645, at the moment of writing. On the daily chart, the yellow metal is practically unchanged.

Precious metals lose footing ahead of the FOMC

Precious metals in general have tread water on Wednesday, after having appreciated sharply on Tuesday. Investors are watching from the sidelines, awaiting the outcome of the Federal Reserve’s monetary policy meeting, due later today.

The market has already priced in a 75 basis point hike, the fourth consecutive such move by the US central bank, although the main event will be the release of the monetary policy statement.

Speculations about a signal to softer hikes from December have been increasing over the last weeks, and the market is split about the size of the next move. With the market extremely sensitive about the Fed forward guidance, any hint might trigger a significant deal of volatility.

XAU/USD: Under renewed bearish pressure with a double top in place – Credit Suisse

Analysts at Credit Suisse see the near-term risk skewed to the downside while below $1,687: “Gold below $1,691/76 has reinforced its existing large ‘double top.’ Hence, with a top in place, we expect XAU/USD to come under renewed pressure. We note that the next support is seen at $1,614, then $1,560 and eventually our core objective at $1,451/40.”

Technical levels to watch