Home Gold Price Tempting Sellers as Market Eying FOMC Minutes
Commodities

Gold Price Tempting Sellers as Market Eying FOMC Minutes

  • The FOMC Meeting Minutes and the US data represent high-impact events.
  • The bias is bearish as long as it stays below the downtrend line.
  • A new lower low activates more declines.

The gold price slipped lower from yesterday’s high of $1,749. The metal is trading at $1,737 at the time of writing. The XAU/USD dropped as the US dollar rebounded across the board.

-Are you interested in learning about the forex signals telegram group? Click here for details-

Today, the FOMC Meeting Minutes could be decisive. As you may know, the US reported lower inflation in October. This situation could help the FED to deliver only a 50 bps hike in December.

Still, the November CPI and Core CPI data could give us a clue of what could happen in the next monetary policy meeting. A dovish FED could weaken the USD and help gold jump higher.

Fundamentally, the yellow metal stays lower because the RBNZ increased the Official Cash Rate from 3.50% to 4.25%, as expected. Earlier, the UK and Eurozone manufacturing and services data came in better than expected, while Germany and France reported mixed figures.

Later, the US economic data could really shake the markets. The Flash Services PMI could be reported at 48.0 points above 47.8 in the previous reporting period, while Flash Manufacturing PMI could drop from 50.4 to 50.0 points.

In addition, the Durable Goods Orders, Core Durable Goods Orders, Unemployment Claims, New Home Sales, and Revised UoM Consumer Sentiment will also be released.

Gold price technical analysis: Flag pattern

gold price

The XAU/USD dropped within the down channel pattern, and now it hovers above the $1,729 – 32 support zone. The bias remains bearish as long as it stays below the down trendline. Still, only a valid breakdown below $1,729 activates more declines.

Are you interested in learning more about making money with forex? Check our detailed guide-

Staying above the support zone and registering a valid breakout through the down trendline could announce a new swing higher. I believe the yellow metal could develop sharp movements after the US data and after the FOMC Minutes.

Looking to trade forex now? Invest at eToro!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

 

Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.