Gold moves further away from highs after FOMC minutes
|- Gold fell modestly after the release of the FOMC minutes.
- Markets ignored minutes and price action remains limited.
Gold reached earlier today a 1-week high at $1229, but it was rejected and turned to the downside. After the release of the FOMC minutes dropped to $1222. As of writing trades at $1224, up $4 for the day. It is the second daily gain in-a-row for the metal that continues to the trade in the $1230 - $1220 range.
The minutes showed that almost all FOMC members considered a rate hike warranted fairly soon. Policy makers discussed changing language on 'further gradual' rate hikes. Regarding the “neutral level,” a couple of participants noted that the federal funds rate might be near that level.
The greenback was unaffected by the minutes while equity prices in Wall Street rose. The US dollar consolidates most of the losses that followed Powell’s speech yesterday.
Levels to watch
Gold is currently in a range with two key levels to watch. To the upside, the $1230 area has become a solid barrier that if broken could trigger more gains to $1236 initially and then $1240. On the flip side, a consolidation below the lower limit of the range at $1220, would signal more weakness ahead with a target at $1215 and then $1210 (weekly low).
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