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Gold fails near 20-DMA resistance, Fed minutes in focus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold prices reverse a part of yesterday’s solid rebound and now waver around $ 1230 barrier, on improved risk sentiment as Asian equities rebound along with the oil prices.

    Gold eyes FOMC minutes for fresh direction

    Currently, gold trades marginally lower at 1230.23, easing-off session highs reached at 1232.27 earlier on the day. The yellow metal takes a pause from the previous rebound in the Asian trades, as the relief rally in the Asian equities curb the safe-haven demand for gold, while a robust recovery in the oil prices also boost sentiment and hence, weighs on the bullion.

    Moreover, the US dollar attempts minor-recovery against its major peers, which also adds to the downside pressure on the dollar priced-in gold. Meanwhile, the USD index is up 0.08% at 94.70 levels.

    Focus now remains on the main risk event for the precious metal this week, the FOMC March meeting minutes due to be published later in the NA session, which is expected to have significant impact on the non-interest bearing gold.

    Gold Technical Levels

    The metal has an immediate resistance at 1236.50 (20-DMA) and 1240 (round number). Meanwhile, the support stands at 1219.14 (50-DMA) below which doors could open for 1215/14 (previous lows).
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