Gold slips in Asia amid risk-on, Fedspeaks in focus

Dhwani Mehta FXStreet

Gold prices on Comex are seen making minor-recovery attempts from session troughs, although keep losses amid persisting risk-on market profile.

Gold trades below 5-DMA at $1237.67

Currently, gold trades -0.32% lower at $ 1135.25, having found solid support near hourly 200-SMA placed at $ 1234.20. Gold rallied to $ 1240 levels a day before, as the greenback suffered losses across the board amid a lack of clarity on Trump's tax policy.

However, the yellow metal failed to sustain the upside and drop sharply in Asia, as the US dollar staged a solid comeback on the back of higher treasury yields amid returning risk appetite. Also, increased nervousness ahead of a raft of Fedspeaks this week weigh down on gold.

Further, in an evidence of deteriorating investors’ confidence in gold, the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, reported an outflow of 2.4 tonnes on Friday, the first in nearly four weeks.

All eyes now remain on the Fedspeaks and FOMC minutes due later this week for fresh direction on the non-interest bearing yellow metal.

Comex Gold Technical Levels

The metal has an immediate resistance at 1240 (round figure) and 1260.75 (200-DMA). Meanwhile, the support stands at 1226.82 (20-DMA) below which doors could open for 1202.10 (100-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.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.