Article by: ETO Markets

The minutes of the Federal Open Market Committee revealed that Fed officials are still hesitant to reduce interest rates too soon, adding that they should wait to do so until they have greater confidence that inflation will continue to move sustainably towards 2%. Policymakers continued to be very attentive to inflationary concerns even though the risks associated with fulfilling both mandates are more balanced, despite the fact that economic risks are biased downward.

Due to a string of lower highs and lows, gold is currently trading in a range that is slightly skewed to the negative. The upside potential of XAU/USD may be limited by resistance at the 50-DMA at $…, but if that level is broken, it would open the door to testing the $… mark. The high on February 1, which is $… represents upside risks.

Conversely, if sellers intervene and drive prices below the $… mark, the 100-DMA will be exposed at $…. The 200-DMA at $… and the low from December 13 at $… would be the next targets.