Gold prices briefly tested the support at 1270 before pulling back from the lows. Price extended gradual declines after breaking down from the 1285 handle. The Fed meeting minutes will be the main highlight of the day. This could potentially see either gold extending the declines or perhaps rebounding off the support level.
XAUUSD Likely to Trade Flat
Price action in the precious metal indicates that the sideways range could build up in the short term. The resistance and support levels of 1285 and 1270 will remain key for the moment. There is scope for gold prices to retest the 1285 level to establish resistance ahead of posting further declines. To the downside, if gold declines below 1270 on a daily basis, we could expect to see a continuation to the downside.
