“Some sell-stop orders were triggered in the futures market after key near-term technical support levels were breached,” Wyckoff said.
Markets will remain subdued up until Yellen’s Friday speech.
“We suspect that any hawkish tone emanating from [Yellen’s] speech regarding rates would have a negative impact on gold,” Edward Meir, an independent commodity consultant at INTL FCStone, told MarketWatch. “But this Fed has proved time and again that it is not one to surprise the markets and if anything, is far more timid than bold.”
SEE MORE: Gold Miners ETFs Will Fight The Fed
Moreover, a strengthening U.S. dollar is also pressuring gold markets. The Dollar Index (DXY) was 0.2% higher to 94.76 Wednesday.
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