Will gold price stage a comeback if Fed minutes disappoints?
“The bullion stuck in a tight range while the market waits for more signals from Fed meeting minutes.”
Gold prices remain pressured at six-week low on Wednesday while market participants remain cautious ahead of Federal Reserve’s meeting minutes. The safe-haven asset trades in a sideways fashion since last week as investors assess the possibility of Fed in changing their policy guidance over a slew of strong economic data. At the same time, doubts were present as recent speech from Fed Chair Jerome Powell shows that the central bank follows through its cautious path and not giving away their point of view by judging at one set of data. Hopefully, the latest Fed minutes may reveal further insight into discussion and concerns raised by Fed members, which could spur substantial volatility in the market.
XAUUSD, H4: Price action on the gold price were limited within the range of 1824 and 1847. Recently formed candlesticks shows indecision in between buyers and sellers as they wait for more signals in terms of fundamental. This was further supported by MACD which fails to show any substantial indication of a possible direction ahead. We may expect gold price to trade within a tight range until a breakout occurs.
Resistance level: 1847, 1869
Support level: 1824, 1775
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