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Gold steady near $1,255.00 as Dollar treads water ahead of Thursday's FOMC minutes

  • A receding US Dollar is giving Gold a chance to rebound from recent lows.
  • Friday will see plenty of action for the Greenback, though Thursday will get things started with the FOMC's latest Meeting Minutes.

Gold is holding steady near 1,255.00 after peaking at 1,261.00 on Wednesday, driven upwards through the mid-week by a softening US Dollar.

The US Dollar is beginning to middle heading into the late week, with the US Non-Farm Payrolls due on Friday, as well as the latest round of tariffs in the US-China trade showdown which are due to take effect on the 6th. Adding to the Greenback's trepidation is Thursday's FOMC Meeting Minutes at 18:00 GMT. 

Worsening trade tensions between the US and China are keeping risk aversion at a decent clip through the week ahead of Friday's tariffs, and the US Dollar has receded in recent days, allowing Gold the chance to bounce from the week's low at 1,237.00. 

Gold levels to watch

Gold surged from seven-month lows this week as the US Dollar eased off pressure, but the bull run has come against resistance near 1,260.00, and a continuation of bullish momentum will have to clear last week's high near 1,270.00, while support remains thin with the precious metal hanging near key lows, and last week's low will  provide support from 1,245.00 while this week's low at 1,237.00 will stand as the key barrier to further bearish action.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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