Consolidating Ahead Of FOMC Minutes

Gold is 0.3% weaker in the Asia-Pac session, after closing 0.2% lower at $2421.05 on Tuesday. With the release of the May FOMC Minutes later today, Tuesday’s price action represented a consolidation after the yellow metal hit a fresh all-time high on Monday.

• The US Short-Term Interest Rate market has this week reduced the odds that the Federal Reserve will deliver two rate cuts this year, even as some US policymakers deliver cautiously optimistic views on the path forward for borrowing costs. Higher rates are negative for gold, as it doesn’t pay interest.
• According to MNI’s technicals team, yesterday’s initial gains resulted in a print above resistance at $2431.5, the Apr 12 high and bull trigger. The break confirmed a resumption of the primary uptrend and paved the way for a climb towards 2452.5 next, a Fibonacci projection.
• On the downside, the 50-day EMA, at $2288.7, represents a key support. A clear break of it would be bearish.