- Yellow metal reverses and falls to test yesterday’s low.
- Limited volatility across financial markets as traders await for the FOMC minutes.
Gold weakened from the highest level in almost two weeks slightly below $1480/oz and moved lower. Recently it printed a fresh daily low at $1465, just cents above Tuesday’s low.
The intraday bias points to the downside. Traders await the release of the FOMC minutes from the latest meeting that could trigger some volatility. Price action across financial markets remains calm with the US dollar rising modestly and bond yields steady.
Equity prices in Wall Street are mostly lower showing little changes. The Dow Jones drops 0.25% and the S&P 500 0.08%, affected by concerns on the impact on US/China trade talks of the recent Hong Kong resolution passed by the US Senate. Those concerns initially boosted XAU/USD to the $1480 area but then it reversed.
Technical outlook
In the short-term, gold is still moving with an upside bias, but the momentum is starting to favor the downside. Price needs to recover levels on top of $1472 in order to target again a test of the $1480 area. Above the next strong resistance is seen at $1490.
On the flip side, a consolidation under $1464 would likely increase the bearish pressure ahead of the Asian session. The next support is located at $1455 (Nov 18 low) followed by $1445 (November low).
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