Gold heads back towards $ 1240, Fed minutes in focus

Dhwani Mehta FXStreet

Gold prices on Comex attempts a tepid bounce so far this session, now looking to regain $ 1240 barrier amid mixed market sentiment.

Gold: Back above 5-DMA at $1237.77

Currently, gold trades modestly flat at $ 1238.15, bouncing-off daily lows struck at $ 1235 pre-Tokyo open. Gold caught a fresh bid-wave in Tokyo and recovered most losses, as the greenback takes a back seat across the board, in wake of cautious comments from Fed official Mester on the Fed rate hike prospects.

While subdued trading activity on the Asian indices, with investors turning cautious ahead of more Fedspeaks and FOMC minutes, also buoyed the sentiment around gold somewhat.

The immediate focus now remains on the upcoming Fed minutes release today, as investors await fresh clues on the timing of interest rate hikes. Also, next week’s President Donald Trump's address to Congress will hold the key to determine next direction on the yellow metal.

Comex Gold Technical Levels

The metal has an immediate resistance at 1243.50 (daily R2) and 1250 (round figure). Meanwhile, the support stands at 1234.30 (daily pivot) below which doors could open for 1229.20 (20-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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