Gold tries to recover from daily lows, remains below $1290 ahead of FOMC
|The XAU/USD pair dropped to a fresh daily low at $1285 in the NA session before staging a modest rebound. As of writing, the pair was trading at $1286.50, still losing 0.1% on the day.
Earlier in the day, the pair rose above the $1290 mark after the greenback lost strength against its peers following some dovish comments from Chicago Fed President Charles Evans, who argued that a monetary tightening wouldn't be constructive if the inflation failed to reach the target and it would be premature to make a call on a possible December rate hike. The US Dollar Index eased to its lowest level since late September at 92.78 but recovered towards the 93 handle before the FOMC releases the minutes of its September meeting. At the moment, the index is at 92.90, down 0.2% on the day.
However, after starting the day virtually unchanged, major equity indexes in the U.S. were able to record small gains and hold them, reflecting a positive market sentiment, which made it difficult for the traditional safe-haven precious metal to sustain its bullish momentum.
On the other hand, statements from North Korea's foreign minister in the last hour revived geopolitical concerns, limiting the pair's losses for the time being.
Technical levels to consider:
The pair could face the initial support at $1275 (Oct. 9 low) ahead of $1263 (200-DMA) and $1251 (Aug. 8 low). On the flip side, resistances align at $1294 (Oct. 10 high), $1300 (psychological level/50-DMA) and $1312 (Sep. 25 high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.