Flat In Asia After Wednesday’s Rally

Gold is virtually unch. at writing, trading just below $1,870/oz, in very limited Asia-Pac dealing. The precious metal remains below the recently recorded multi-month highs, as support from geopolitical tensions surrounding Ukraine has moderated from extremes.

• Admittedly, questions and western scepticism re: the Russian claims of at least a partial troop pullback remain evident. This fed into price action on Wednesday, as bullion added ~$15/oz in spot trade, given the continued line of questioning from western powers.
• A lack of fresh, hawkish developments in the Fed minutes covering the central bank’s most recent monetary policy meeting also supported gold on Wednesday.
• On the technical front, bulls now look to resistance at $1,881.6/oz (1.00 projection of Dec 15-Jan 25-28 price swing), while initial support is defined at $1,844.7/oz (Feb 15 low).