Gold up on Fed caution over rates; higher equities cap gains.
Gold ticked up on Thursday after minutes from the Federal Reserve's last policy meeting showed caution over higher U.S. interest rates, but the metal's gains were capped by strength in global equities.
After the minutes, traders added slightly to bets that the Fed will raise rates earlier than December, the timing that had been expected before the release.
Stronger equities dent the safe-haven appeal of gold.
Weakness in the dollar supported gold. The greenback wallowed close to a 17-month low against the yen on Thursday.
Assets in SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, rose 0.51 percent to 819.60 tonnes on Wednesday, the first inflow in nearly two weeks.
Safe-haven gold prices ended the U.S. day session moderately lower Wednesday. There was less risk aversion in the marketplace on this day, which kept the yellow metal bulls on the defensive. However, gold prices did closed up from their session lows as the key “outside markets” were in a bullish posture for the precious metals markets today—a lower U.S. dollar index and solidly higher crude oil prices. June Comex gold was last down $5.00 at $1,225.00 an ounce. May Comex silver was last down $0.036 at $15.09 an ounce.
Wednesday afternoon’s minutes from the latest meeting of the Federal Open Market Committee (FOMC) did not move the markets appreciably, as there were no surprising or unexpected revelations in the minutes. The minutes said the FOMC debated a rate hike in April, but members were mostly against such a move.
Technically, June gold futures prices closed near mid-range. Gold bulls still have the overall near-term technical advantage. However, a three-week-old downtrend is in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,246.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of 1,207.70. First resistance is seen at today’s high of $1,233.80 and then at this week’s high of $1,238.80. First support is seen at this week’s low of $1,217.50 and then at last week’s low of $1,210.30. Wyckoff’s Market Rating: 6.0
Reference: Reuters, Kitco, Investing
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