Gold wobbles near $1,500 with all eyes on FOMC minutes

• Gold buyers await FOMC minutes for fresh longs after Tuesday’s recovery.
• Fed officials have been upbeat off late.
• Trade war, geopolitics keep offering background music to the momentum.

Although fewer catalysts suggest receding trade/political tension, not to forget firm bearish bets for the Fed, Gold prices fail to extend the latest recovery as investors remain cautious ahead of the key events. The bullion takes the rounds to $1,503 by the press time before Wednesday’s Europe session.

The US Secretary of State Mike Pompeo sounded upbeat for the future trade relationship between the US and China in spite of the US President’s repeated pessimistic calls for the same. However, the White House chief of staff Mick Mulvaney acknowledges US facing a recession

On the other hand, Federal Reserve  Bank of San Francisco’s President Mary C. Daly followed the footsteps of Federal Reserve Bank of Boston’s President Eric Rosengren while turning down the fears of the US recession.

Elsewhere, the US Special Representative for North Korea showed readiness for a trade talk with the hermit kingdom whereas Japanese Foreign Minister Taro Kono supported cooperation with China and South Korea. Furthermore, the news platter also shows that the US remains a stark opponent of Iran supporters and a blast was registered in Iraq.

The US 10-year treasury yield, generally considered as a gauge of risk sentiment, recovers to 1.576% by the press time.

Given the mixed global developments, investors will seek fresh clues from the July month’s Fed meeting, to be conveyed via Federal Open Market Committee (FOMC) minutes, for the US central bank’s future policy moves.

Technical Analysis

A sustained break below 10-day exponential moving average (EMA) level of $1,500 becomes necessary for prices to revisit 23.6% Fibonacci retracement of April-August upside, at $1,471, in absence of which Friday’s high around $1528 and the monthly top surrounding $1535 can keep buyers happy.