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The horizontal 200-SMA at $1796 appears a tough nut to crack for gold bulls while the immediate downside remains capped by the horizontal 100-SMA at $1786.

The Fed minutes could yield a breakout in either direction. However, with the Relative Strength Index (RSI) edging higher above the midline, the risks remain skewed towards an upside breakout.

The 200-Daily Moving Average (DMA) at $1813 could be next on the buyers’ radar.

Therefore, a four-hourly closing above the 200-SMA could call for a test of the $1800 mark.

Alternatively, any dip below the 100-SMA could expose the bullish 21-SMA at $1780, below which the last line of defense appears at the downward-sloping 100-SMA at $1759.

 

·         Spot gold target range of $1,801-$1,811 aborted

A bullish target range of $1,801-$1,811 per ounce has been temporarily aborted for spot gold. It will only be resumed when the metal breaks above $1,795.

The sharp correction from the Tuesday high of $1,795.25 suggests the completion of a wave c from $1,716.57. Even though gold manages to hover above a key support at $1,785, the target zone of $1,811-$1,827 looks doubtful.

As long as gold remains below $1,795, it is likely to drop towards $1,716.57, the bottom of the wave b. A break above $1,795 could confirm the extension of the wave c towards $1,811.

Spot gold may rise into $1,801-$1,811 range

On the daily chart, a small doji formed on Tuesday, around a strong resistance of $1,800.

This candlestick looks like a convincing bearish reversal pattern, gold may pull back towards $1,765 or at least fall to $1,773.

A break above $1,800 may not trigger an impressive gain, as the metal will face a resistance established by a falling trendline.

 

·         Silver XAG= rose 0.5% to $23.75 per ounce, while platinum XPT= climbed 1.1% to $1,008.60.

·         Palladium XPD= rose 1.7% to $2,532.18, rebounding from its lowest level in nearly two months hit on Tuesday.

 

·         Dollar stands tall before Fed minutes; kiwi volatile

The dollar index held steady around 93.01, just below the one-week high it hit on Tuesday.

The dollar held at a nine-month high versus the euro on Wednesday as major currencies marked time before the release of the Fed’s July minutes, with the kiwi the big mover overnight after its central bank kept interest rates unexpectedly on hold.

The Kiwi was up 0.17% at $0.6935 in early London trading having fallen about 1% to $0.6868 immediately after the Reserve Bank of New Zealand said it would keep rates at 0.25%, after the country was put into a snap COVID-19 lockdown.

 

·         U.S. should focus on vaccinating the rest of the world before Covid booster shots, says Dr. Vin Gupta

·         U.S. reports more than 1,000 COVID deaths in single day

·         Sydney warned worse to come as Delta cases surge

·         New Zealanders begin life in lockdown as Delta COVID-19 cases edge up

·         New Zealand delays rate hike amid COVID-19 outbreak, flags tightening before yr-end

New Zealand’s central bank on Wednesday left interest rates unchanged at a record low of 0.25%, as the country was put into a snap lockdown following the detection of new coronavirus cases. A majority of economists polled by Reuters last week had expected the Reserve Bank of New Zealand (RBNZ) to increase the cash rate by 25 basis points, although some forecasts had changed overnight after the latest COVID-19 shakeup.

 

·         Central bankers strike a cautious tone amid COVID-19 outbreak

Fed speakers draw a cautious tone: In his speech yesterday Fed Chair Jerome Powell did not touch on monetary policy but said that the COVID pandemic continues to cast shadows on the economic activity while Minneapolis's governor Kashkari warned that a rate hike could be a "few years away" given the virus resurgence's broader economic implications.

New Zealand's central bank keeps rates unchanged amid COVID outbreak

 

·         China calls for curbs on ‘excessive’ income and for the wealthy to give back more to society

In his first public chairing of a meeting since late July, Xi also called for preventing major financial risks.

Chinese President Xi Jinping emphasized at a finance and economic meeting Tuesday the need to support moderate wealth for all — or the idea of “common prosperity,” which analysts have said is behind the latest regulatory crackdown on tech companies.

 

·         China's July exports to North Korea up for second month

Chinese shipments to North Korea rose to $16.8 million in July from $12.3 million in June, Chinese customs data showed. Shipments totalled $207.7 million in July 2019, before the coronavirus pandemic disrupted trade.

·         Japan worries it could be left behind as U.S. pours billions into chip industry to fend off China

·         Japan's exports extend gains, machinery orders fall amid fragile recovery

Japan’s exports marked a fifth straight month of double-digit growth in July, driven by U.S.-bound shipments of automobiles in a positive sign for a trade-led economy, although a key gauge of capital spending fell for the first time in four months.

Ministry of Finance data out on Wednesday showed Japanese exports grew 37.0% year-on-year in July, a tad slower than a 39.0% increase expected by economists in a Reuters poll, although the gain was exaggerated by the contrast to the prior year’s COVID-induced slump.

It followed a 48.6% growth in the prior month.

 

·         Evacuations from Afghanistan gather momentum as Taliban promise peace

·         Leaders of Afghan Taliban will not stay in 'shadow of secrecy' - group official

 

 

·         From India to China, the Taliban’s return leaves Afghanistan’s neighbors scrambling to adjust

The Taliban’s swift return to power after two decades has left Afghanistan’s neighbors scrambling to figure out how to adjust to a shifting geopolitical outlook, experts told CNBC.

 

 

Reference: CNBC, Reuters, FXStreet