SPOT GOLD extends Tuesday’s advance; Fed minutes in focus
Spot Gold was modestly higher on Wednesday and extended recovery from the previous, hitting session high at $1286.
Bulls were so far unable to hold gains and repeating scenario Tuesday’s scenario of quick pullback after hitting new highs.
The yellow metal remains underpinned by expectations of Fed rate hike in December, with today’s focus being on release of minutes of the latest FOMC meeting, as investors are looking for more information of the pace of potential rate hike in December.
Today’s bullish acceleration probed above hourly cloud top (1286) which also marks 50% retracement of $1296/$1274 fall, with sustained break here needed to confirm near-term bullish structure and open way for further recovery.
Broken 10SMA offers initial support at $1281 while stronger bearish signal could be expected on return below 20SMA ($1277).
Res: 1286; 1290; 1294; 1296
Sup: 1281; 1277; 1274; 1270