Gold Pulls Back From Two-Week Highs Ahead Of Fed Minutes
Gold prices pulled back from two-week highs on Wednesday, snapping a four-day streak of gains, as the U.S. dollar recovers some ground across the board ahead of the Federal Reserve’s minutes release. XAU/USD erased Tuesday’s advance entirely, and it is trading just above $1,850 an ounce.
Over the last months, it seems that gold has broken its inverse correlation with stocks. The metal is retreating alongside Wall Street futures, despite the pullback seen in U.S. Treasury yields.
Investors’ focus remains on the release of the Fed last meeting minutes later during the New York session. The market expects at least two more meetings of 50 basis points rate increases, but the path is not as clear past that point. Minutes could shed some light on FOMC members’ mindsets.
From a technical standpoint, XAU/USD maintains a short-term slight positive bias as the price struggles to hold above the 20-day SMA and indicators begin to lose upward momentum.
The RSI turned lower after touching its midline and now heads south in negative territory. At the same time, the MACD continues to print green bars but signaling dwindling buying interest.
If the metal breaks decisively below the $1,850 zone, the next supports could be found at the 200-day SMA, currently at $1,839 an ounce. Loss of this latter would expose the $1,800 psychological level and May swing lows at the $1,785 area.
On the other hand, a rise above the $1,870 area could resume the short-term bullish momentum and target the 100-day SMA at $1,885 en route to the $1,900 level.
Over the last months, it seems that gold has broken its inverse correlation with stocks. The metal is retreating alongside Wall Street futures, despite the pullback seen in U.S. Treasury yields.
Investors’ focus remains on the release of the Fed last meeting minutes later during the New York session. The market expects at least two more meetings of 50 basis points rate increases, but the path is not as clear past that point. Minutes could shed some light on FOMC members’ mindsets.
From a technical standpoint, XAU/USD maintains a short-term slight positive bias as the price struggles to hold above the 20-day SMA and indicators begin to lose upward momentum.
The RSI turned lower after touching its midline and now heads south in negative territory. At the same time, the MACD continues to print green bars but signaling dwindling buying interest.
If the metal breaks decisively below the $1,850 zone, the next supports could be found at the 200-day SMA, currently at $1,839 an ounce. Loss of this latter would expose the $1,800 psychological level and May swing lows at the $1,785 area.
On the other hand, a rise above the $1,870 area could resume the short-term bullish momentum and target the 100-day SMA at $1,885 en route to the $1,900 level.