Gold holds stable below $1275 level, FOMC minutes awaited

Haresh Menghani FXStreet

• 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

XAU/USD

Overview
Today last price	1273.64
Today Daily Change	-1.17
Today Daily Change %	-0.09
Today daily open	1274.81

Trends
Daily SMA20	1283.08
Daily SMA50	1290.86
Daily SMA100	1296.82
Daily SMA200	1258.64

Levels
Previous Daily High	1297.8
Previous Daily Low	1269.65
Previous Weekly High	1311.8
Previous Weekly Low	1275.09
Previous Monthly High	1310.7
Previous Monthly Low	1265.6
Daily Fibonacci 38.2%	1280.4
Daily Fibonacci 61.8%	1287.05
Daily Pivot Point S1	1263.71
Daily Pivot Point S2	1252.6
Daily Pivot Point S3	1235.56
Daily Pivot Point R1	1291.86
Daily Pivot Point R2	1308.9
Daily Pivot Point R3	1320.01

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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