- Gold struggles to make a decisive move in either direction on Wednesday.
- Risk-on atmosphere makes it difficult for gold to find demand.
- Persistent USD weakness helps XAU/USD limit its losses.
The XAU/USD pair is fluctuating in a tight range near $1,750 on Wednesday as the upbeat market mood dampens the demand for safe-haven assets. As of writing, the pair was up 0.3% on the day at $1,749.
The risk rally that dominated the financial markets at the start of the week gathered momentum on Wednesday after taking a break on Tuesday. Wall Street’s main indexes opened the day in the positive territory and continued to push higher to reflect the risk-on atmosphere. At the moment, the S&P 500 and the Nasdaq Composite are both gaining around 1.5% on a daily basis.
Eyes on FOMC Minutes
Meanwhile, investors seem more interested in risk-sensitive currencies such as the antipodeans rather than the greenback. In fact, the US Dollar Index, which closed the last two trading days in the red, fell to its lowest level in more than two weeks at 99 and was last seen losing 0.44% at 99.14. The selling pressure surrounding the greenback helps the pair limit its losses in the second half of the day.
At the top of the hour, the FOMC will release the accounts of its April 28-29 meeting. The statement is not expected to reveal any fresh clues regarding the Fed’s policy outlook and the pair is unlikely to show a significant reaction.
Technical levels to watch for
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