Gold daily gains capped near $1,260

Pablo Piovano FXStreet

Bullion keeps recovering the ground lost on Wednesday, now deflating from session tops in the boundaries of $1,260 per ounce troy to the current $1,255 region.

Gold finds support after FOMC

The demand for the precious metal gathered extra traction following the FOMC minutes on Wednesday, where the Committee kept its view of a gradual tightening of the Fed’s monetary conditions in the next months.

Members of the Committee have suggested as well that further evidence of the ‘transitory’ slowdown in Q1 is needed in order to assess the Fed’s future steps, adding to the uncertainty around the buck.

Gold is advancing for the first time after two consecutive pullbacks, although it so far manages to keep the trade in the upper end of the recent range, with gains so far limited around the $1,260/65 band.

Gold key levels

As of writing Gold is gaining 0.20% at $1,255.85 facing the next hurdle at 1,265.00 (high May 18) seconded by $1,272.40 (high May 1) and finally $1,277.79 (76.4% Fibo of the April-May drop). On the flip side, a breakdown of $1,251.21 (55-day sma) would aim for $1,246.04 (38.2% Fibo of the April-May drop) and then $1,241.89 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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