23-05-2018 11:05 AM
Gold prices traded almost unchanged on Tuesday as the dollar’s recovery from session lows kept a cover on upside drive in the precious metal ahead of the release of the Federal Reserve’s May meeting minutes.
Reserve’s May meeting minutes.Gold prices retreated as the dollar gained back from its losses to turn optimistic for the day ahead of the Fed’s May meeting minutes due on Wednesday.
The U.S. dollar index rose to 93.53 after touching a session low of 93.20.
The Fed’s preferred measure of inflation currently sits at 1.9%, just shy of the U.S. central bank’s 2% target. But recent data including two regional manufacturing surveys has stoked expectations for an uptick in price pressures.
The gold daily chart has formed “Right-angled Descending broadening”. In this pattern, prices are holding nearby support line $1290. The FOMC interest rate decision is awaited tonight. The reserve is not expected to change interest rates. The oversold reaction is likely to bounce back towards $1305.
As per the technical aspects, gold prices would consolidate around the support area. The additional Strong support is seen at $1270. The gold market is in short-term bullish momentum. It is likely to test all the way through $1290-1300 levels in the upcoming sessions.