Gold Prices Decline Ahead of FOMC Minutes Release
- Gold Prices Decline Ahead of FOMC Minutes Release
- Support Found at the 10 Day EMA at $1,249.48
- Looking for additional trade ideas for gold and commodities markets? Read our gold market trading guide.
Gold prices are dipping this afternoon ahead of today’s 2PM ET FOMC meeting minutes release (3May). This move is predicated on a general US Dollar rally, which has seen metals and commodities markets push lower. If expectations for a June rate hike increase, traders may see gold prices continue to trend lower in the short term. However if the Fed signals that a June hike is unlikely, gold prices may quickly rebound intraday.
Technically gold prices are now finding support above the 10 day EMA (exponential moving average) found at $1,249.48. If today’s news from the Fed turns out dovish, traders may look for gold to bounce and retest last week’s high at $1,265.13. Alternatively, a hawkish release may push gold prices back below the 10 day EMA. This would suggest a bearish turn in the market, and re-expose the 200 day MVA (simple moving average) at $1,227.80.
Gold Price, Daily Chart with averages
Intraday analysis shows gold prices selling off below today’s central pivot at $1,255.68. If prices turn lower on this afternoon’s news, traders may next look for support at the S1 pivot near $1,247.49. Traders should note that a move to this point graphically places gold below the previously mentioned 10 day EMA. Further bearish momentum may expose other values of intraday support, including the S2 and S3 pivots found at $1,242.59 and $1,234.40.
In the event that prices bounce back above today’s central pivot, traders may look for resistance to be found at the R1 pivot near $1,260.58. A move beyond this point would suggest that gold prices are again trending higher in the short term. In a continued bullish move, traders should note that today’s R2 and R3 pivots are found at $1,268.77 and $1,273.67. Both of these values are located above last week’s swing high, and a breakout here may suggest a broader breakout for the metal.
Gold Price, 30 Minute Chart and Pivots
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.