Spot Gold holds positive tone on Wednesday but stays under Tuesday’s spike high at $1294, where three-day recovery rally was rejected at Fibo 61.8% of $1313/$1260 downleg / falling 20SMA.
The yellow metal benefited from weaker dollar and safe-haven buying in past couple of days. The price action today may stay on hold until release of FOMC last policy meeting minutes, which are expected to generate fresh direction signal.
Hawkish remarks from Fed’s September meeting would further boost expectations that the Fed will raise rates in December and put gold price under pressure.
Such scenario would trigger fresh weakness and pressure broken 10SMA ($1278) and 100SMA (1273) and turn near-term focus lower.
Softer tone from Fed would risk fresh advance through $1297 (Fibo 38.2% of $1357/$1260 descend) and daily cloud top ($1304).
Res: 1291, 1293, 1297, 1300
Sup: 1286, 1282, 1278, 1273
