Home » Technical Analysis » Gold Prices can Extend Recovery on FOMC Minutes

Gold Prices can Extend Recovery on FOMC Minutes

Points to consider in this gold article:

  • The price of gold has edged higher despite upbeat economic data out of the US.
  • Investors now eye the upcoming FOMC meeting minutes from December.

The price of gold (XAU/USD) finished overnight trading with a modest gain. The precious metal fell as the Dollar has jumped higher alongside US Treasuries and the S&P 500. There was also better than expected manufacturing ISM data. Just 10 minute later, the financial markets reversed direction as gold rallied to session highs. Yields, the Dollar and stock markets fell lower.

On the economic calendar today, the Federal Reserve will release their las minutes from the December Federal Open Markets Committee (FOMC). In December we saw the FOMC raise rated 25 basis points and steepen their rate hike path from two to three in 2017. The markets read this a hawkish move by the Fed.

Fed Chair Janet Yellen and tried to unsuccessfully play down this narrative by indicating only a few members supported this move. She has been trying to stress that everything depends on the fiscal outlook. Investors have ignored her statements in favor of a more hawkish tone set by the Federal Reserve in December as the recent presidential election holds a lot of sway in sentiment right now.

However, a similar tone in the minutes may command investor attention sending money into gold.

Gold Technical Analysis

Let’s look at today’s gold technical analysis. There is the first level of resistance that line up at 1166.50. A daily close above this level challenges the next upside barrier at the end of congestion zone that runs to the May 30 low. This area lines up at 1193.50 to 1199.80.

The alternative technical analysis notes the first layer of support lining up at 1149.80. A break below this first downside barrier challenges the next layer of technical support lining up at the December 15 low. This support barrier lines up at 1122.80.

Find A Regulated Broker

FXCM
OCTAFX
Libertex
IronFX
FXTM
Swissquote
24option
AvaTrade
Plus500
GDMFX
FXGiants
IQoption
eToro
Orbex
Markets.com
FBS
InterTrader
STO

About ForexMarketz

Check Also

kiwi, dollar, nzd

The Kiwi Dollar takes a big hit this Morning

This morning, so far in early Asian trade hours, the Kiwi dollar has taken a …