During the European session, yellow metal gold surged back above the psychological resistance level of $1,500, recovering from the previous day’s dramatic losses as traders switched focus to the minutes of the U.S. Federal Reserve’s latest meeting. FOMC meeting minutes are scheduled later this week and will remain in focus for clues on further interest rate cuts.
Basically, the meeting minutes from the U.S. Central Bank’s July policy meeting are listed on Wednesday, with investors also keeping a close eye on the central bank’s Jackson Hole seminar and this weekend’s Group of Seven summit.
Gold’s Technical Outlook
Taking a look at 4-hour timeframe, gold has completed 32.8% Fibonacci retracement at 1506 level. Typically, the 38.2% level is considered strong enough to push the prices lower, but bullish power in gold is pretty strong today.
Oscillators on the daily chart maintained their bullish bias and might continue to attract some dip-buying interest, which might help limit further downside ahead of Wednesday’s important release of the latest FOMC policy meeting minutes.
A bullish breakout of 1506 can lead gold prices towards 1510 and 1514, the 50% and 61.8% Fibonacci retracement levels.
Support and Resistance
Key Trading Level: 1513.18
Gold – Daily Forecast
Consider trading bullish above 1504 to target 1508 and 1510 during the New York session today.
All the best!