Gold was trading near a three-week low on Thursday as the dollar stood tall after minutes from the Federal Reserve policy meeting showed the U.S. central bank could raise rates as soon as next month.
Spot gold was little changed at $1,258 per ounce at 0038 GMT. The metal fell 1.7 percent in the previous session, hitting a three-week low of $1,254.65.
A Fed policymaker said on Tuesday he would push for an interest rate hike in June or July, and two other Fed officials predicted up to three rate increases this year.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.56 percent to 855.89 tonnes on Tuesday.
Gold prices are moderately lower in afternoon U.S. trading Tuesday, pressured by just-released FOMC minutes that were deemed to favor the hawkish camp on U.S. monetary policy. A higher U.S. dollar index on this day was also a bearish element for the precious metals markets. June Comex gold futures were last down $9.30 an ounce at $1,267.60. July Comex silver was last down $0.200 at $17.05 an ounce.
Technically, June gold futures closed near mid-range. The gold bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May of $1,306.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at today’s high of $1,283.50 and then at this week’s high of $1,290.40. First support is seen at the May low of $1,258.50 and then at 1,250.00. Wyckoff’s Market Rating: 7.0
Reference: Daily Times, Reuters, Kitco
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