The commodity benefited from a retreating dollar and an increase in safe-haven demand for the past couple of days., with the current price action being on hold until the release of the FOMC last policy meeting minutes, which are expected to generate fresh cues.
The precious metal had strengthened earlier in the week amid heightened geopolitical tensions in North Korea and Spain.
Spanish political tensions eased after Catalan President Carles Puigdemont on Tuesday signed a document proclaiming the region’s independence from Spain, but also suspended the move for the coming weeks to allow for talks with the Spanish government, averting an immediate crisis.
Gold seems to be currently in consolidation mode as market participants are on the lookout for the minutes of the Federal Reserve’s most recent policy meeting due later in the day for indications on future rates hikes.
Should today’s FOMC adopt a softer tone to the December rate hike, it would trigger a fresh advance for the commodity through the 1295(R2) and 1300.47(R3).
On the other hand, should the Fed sound hawkish from the September meeting it will further boost expectations that the Fed will raise rates in December, which in turn will put some downward pressure on the yellow metal.
The yellow metal could retreat towards the 1284.31(S2) and 1279.00.
Resistance Levels: 1292,1295,1300 and 1315
Support Levels: 1287,1284,1279 and 1262