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Gold prices were trading modestly lower in early afternoon U.S. trading Wednesday, in the aftermath of the September FOMC minutes report that did not contain significant markets-moving details. The precious metals were weighed down by the recent solid rally in the U.S. dollar index, which hit a seven-month high today. December Comex gold was last down $1.70 an ounce at $1,253.80. December Comex silver was last down $0.004 at $17.51 an ounce.

The FOMC minutes from the September meeting showed it was a close call on raising interest rates at the meeting, but the monetary doves did win out. However, there are growing ideas the Fed will make a rate hike yet this year, and probably in December.

Major U.S. investment bank Goldman Sachs sees the gold market at major technical crossroads, noting that this past year the market has been in a “corrective process” since hitting the multi-year lows in December.

In a technical analysis report published Tuesday, analysts at the bank said that gold needs to recover the $1,303 level to restart its recovery process.

In the meantime, investors and traders need to pay attention to the $1,250 level as a break below that could lead to a test of the next support at $1,211 an ounce. December Comex gold futures are seeing some modest selling pressure Wednesday with prices last trading at $1,254.6, down 0.10% on the day.

ABN Amro Bank NV today lowered its year-end forecast by 9.4 percent to $1,200 and said this year’s uptrend is over. Rising inflation and sagging confidence in the ability of central banks to revive global growth will drive up gold, making sense for investors to hold the metal, according to Ronald Stoeferle, managing partner at Incrementum AG.

Reference : Bloomberg, KITCO