Spot gold stabilises after U.S. Fed minutes – the USA close for Thanksgiving day

November 25, 2021 - 1 week ago
Share on twitter
Share on facebook
Share on linkedin
Share on email

After the Wednesday session, the precious yellow metal ended mixed as traders slowly digested the U.S. Federal Reserve release of the minutes from its October policy meeting.

The minutes showed that Fed officials discussed how they “would not hesitate” to take appropriate actions to address inflation pressures that posed risks to the economy.

The minutes also revealed Fed officials maintained that the spike in inflation seen this year was still likely to be transitory while acknowledging that the rise in prices had been greater than expected.

“Many participants pointed to considerations that might suggest that elevated inflation could prove more persistent,” the minutes said.

Earlier this month, Fed officials confirmed plans to shrink the central bank’s monthly bond purchases.

Meanwhile, the US Dollar Index, also known as US DXY, measures the greenback’s strength against a basket of six rivals refreshed its 16-month highs to 96.92, with the 97.40-80 region potentially exposed.

Based on the technical aspect, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative but remains oversold, while the Moving Average Convergence Divergence (MACD) supports a bearish bias.

However, noting that we are oversold, the bearish risks may still hold towards the downside, with the support exposed at $1,757-64.

Reassess from there as a potential rebound may arise.

Share on twitter
Share on facebook
Share on linkedin
Share on email