Gold holds stable below $1275 level, FOMC minutes awaited
| • A modest USD uptick prompts some fresh selling on Wednesday.
• The downside remains cushioned amid US-China trade tensions.
• Focus on Wednesday’s key release of the FOMC meeting minutes.
Gold failed to capitalize on the overnight late rebound from over two-week lows and traded with a mild negative bias through the early European session on Wednesday.
A modest US Dollar pullback on Tuesday - led by a sharp intraday spike in the British Pound, underpinned demand for the dollar-denominated commodity and helped stall the recent pullback from levels just above the key $1300 psychological mark.
The uptick lacked any strong follow-through, rather met with some fresh supply on Wednesday and remained capped in wake of some renewed USD strength, albeit the prevalent cautious mood amid the latest news on US-China trade seemed to limit the downside.
Adding to the recent escalation in the US-China trade tensions, the Trump administration was reported to blacklist Chinese surveillance technology firm - Hikvision, and might also be considering cutting off the flow of vital American technology to as many as five Chinese companies.
The news weighed on investors' risk sentiment and extended some support to the precious metal's perceived safe-haven status, though failed to provide any meaningful impetus ahead of Wednesday key release of minutes from the latest FOMC policy meeting, due later during the US session.
Technical levels to watch
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