Spot gold bulls unfazed by U.S. Fed minutes

April 8, 2021 - 2 weeks ago
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The precious yellow metal consolidated throughout the Wednesday session and seemed unfazed by the U.S. Federal Reserve’s latest policy meeting minutes.

The central bank reaffirmed its commitment to supporting the economic recovery.

U.S. Treasury yields were mostly lower on Wednesday after the Federal Reserve struck a dovish tone in its March policy meeting minutes, reinforcing expectations that interest rates will remain low for some time.

Data on Tuesday showed U.S. job openings rose to a two-year high in February while strengthening domestic demand helped hiring amid increased COVID-19 vaccinations and additional pandemic aid from the government.

Looking forward, our attention turns towards Thursday’s U.S. weekly jobless claims and a speech by the U.S. Fed Chair Jerome Powell at a virtual International Monetary Fund (IMF) Seminar.

Viewing the technical standpoint for the Relative Strength Index (RSI), 3-daily ‘lookback’ indicator holds above the 50-midway point, which supports a positive signal, along with the Moving Average Convergence Divergence (MACD).

With the upside target reinstated at $1,752-54 to $1,760-65.

Only a close beneath $1,710-12 would potentially negate this upside call and instead reinstate the $1,680 mark.

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