With less than a few hours left for the release of minutes from the US Federal Reserve’s April policy meeting the Gold price trading near the $1870 area. The safe-haven metal surged to $1875 on Tuesday, the highest level since Jan 2021. The upside rally boosted by a weaker dollar and concerns surrounding higher inflation.
The April FOMC minutes expected to provide more details about how the FED policymakers view the inflation pressures and any hints for the interest rate normalization. While several market participants anticipating that the officials will likely maintain their stance to continue holding interest rates close to zero.
Technically the overall momentum remained bullish for the metal after the bulls break above the $1860 area. At the time of writing, the precious metal hovers below this week high of $1875.
In the short term if the price breaks above $1875 which would open doors towards the next resistance area of $1882 and above that $1890/95 is next. On the other hand, if the USD rebound after the FED minutes and the Gold buyers failed to keep the upside momentum the metal expected to retreat lower to $1844 and then $1820/10.
In the long term, watch for the important breakout at $1760 and $1960, which will give a larger confirmation of direction in the long term.
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