- Gold prices were trading in a narrow range ahead of the release of the Federal Open Market Committee’s minutes.
- Markets are viewing the possibility of additional US rate hikes more cautiously than before, a stance that is supporting hard assets such as gold.
- Technically, gold is trading above its 10-day moving average, with resistance at $4,180 and support at $4,130.
Forecast Trend Report by Period
International gold prices were little changed ahead of the release of minutes from the Federal Reserve’s last meeting.
According to Bloomberg, spot gold traded near $4,165 an ounce in early Asian trading on July 6. It fell 0.3% in the previous session, while investors awaited minutes from this week’s Federal Open Market Committee meeting for clues on the future path of monetary policy.
Lorna O’Connell, head of market analysis for EMEA and Asia at StoneX Group, said markets are treating the prospect of additional US rate increases more cautiously than before. That shift in sentiment is offering some support to hard assets such as gold.
Gold has retreated since reaching a record high in January, pressured by concerns over tighter US monetary policy and easing tensions in the Middle East. More recently, oil prices stabilized after a ceasefire agreement between the US and Iran, and bargain buying helped gold regain the $4,000-an-ounce level.
Technically, gold has also moved back above its 10-day moving average. O’Connell said the indicators point to room for further gains. Resistance is seen near $4,180, while support is holding above $4,130.
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