- The yellow metal retraced back after an initial spike following FOMC Minutes
- The risk for Gold remains to the downside, with several indicators and charts pointing south
The Gold spot price is trading around $1323.80 a troy ounce, after bouncing up to 1335 and then quickly retracing back in the aftermath of the FOMC Minutes release. The greenback was sold across the board initially after the Fed released the document, initially tagged as less hawkish than expected, with lagging inflation showing as a concern to some FOMC members.
That was a short-lived reaction, as the USD quickly came back, catalyzed by US Yields.
Technically, the yellow metal daily chart shows that the Gold spot price action has been contained by a key Fibonacci barrier, which matches a bearish 20 SMA. Technical indicators have moved back to negative territory. Moreover, Gold has been making lower lows and lower highs for four trading sessions, which certainly helps the bears.
In the short-term, our Chief Analyst Valeria Bednarik still sees “the risk bias to the downside”, with price action, technical indicators and moving averages all pointing south. Key supports are located at 1322.90, 1315,96 and 1308.10. On the other hand, resistances are set at 1335.35, 1345.20 and 1356.99.
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