The precious yellow metal edges higher on Wednesday as market participants prepare ahead of the U.S. Federal Reserve’s latest meeting minutes and inflation data.
Investors will be looking for clues about timelines surrounding the central bank’s planned taper for its bond-buying program.
According to Fed Bank of Atlanta President Raphael Bostic, inflationary pressures are lasting longer than expected, and it is inappropriate to describe the rise as transitory.
Meanwhile, Vice Chairman Richard Clarida said that the conditions required for the Fed to begin asset tapering have “all but been met.”
Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds a positive signal since breaking through the 50-midway point, while the Moving Average Convergence Divergence (MACD) holds a positive signal.
Due to the mixed signals, market bears will still be monitoring the support level at $1,748.
A close beneath this level would weaken the bullish foundations.
This, in terms, exposes the region of $1,721-33 area before any bullish retaliation.
Meanwhile, continue to monitor the US dollar (US DXY) as a close above 94.40 (last at 94.34) would be viewed bullish to a potential target of 95.30-80.