- Gold is flatlined around the 50-day MA.
- Focus on Fed monetary policy report.
Gold is trading in the sideways manner around the 50-day MA of $1,330, having defended the key ascending trendline support yesterday on the back of broad-based USD weakness.
The metal hit a low of $1,320 yesterday after the Fed minutes revealed growing confidence in the need for further rate hikes. However, the resulting strength in the greenback was short-lived. The dollar index, which tracks the value of the greenback against majors, fell from 90.17 to 89.56, thus helping the yellow metal recover to $1,330 levels.
Moreover, the recovery also ensured the support of the ascending trendline (drawn from the Dec. 12 low and Feb. 8 low) remains intact.
Ahead in the day, the metal may trade in a flat to positive manner due to caution ahead of the release of the Fed's biyearly monetary policy report. Analysts believe this could offer insights into Powell's testimony due on Monday.
Gold Technical Levels
A break below $1,320 (previous day's low) would open up downside towards $1,307 (Feb. 8 low) and $1,300. On the higher side, breach of resistance at $1,332.19 (previous day's high) could yield rally to $1,339 (10-day MA) and $1,344 (Jan. 15 high).
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