Fed Minutes Facilitate Pullback After Test Of Resistance, Tight Asia Trade Observed

Gold has stuck to a narrow range during Asia-Pac hours, with spot hovering just above $1,805/oz, a handful of dollars softer on the day. A reminder that the minutes from the FOMC’s Dec meeting provided a hawkish market reaction (with the potential for a faster rate liftoff and swifter, more aggressive round of balance sheet normalisation at the fore). This supported the DXY and U.S. real yields, which allowed bullion to fully unwind the gains registered in pre-Fed minute dealing, moving into negative territory come the bell. Familiar technical parameters remain in play after the early Wednesday rally failed to break key near-term resistance ($1,831.9/oz).