Gold set-off the FOMC minutes’ week on a bearish note as mixed sentiment prevailed in the Asian session so far, with markets still mulling over the Fed interest rates prospects for this year.
Gold drops below all major hourly MAs
Currently, gold drops -0.25% to 1219.48, recovering from a dip to 1216.17, session lows. The yellow metal extends losses for the second straight session after the stronger-than expected US labour market report refuelled April/June Fed rate hike expectations, and thus, weighed on the non-interest paying gold.
Moreover, a mild favourable tone seen in the Asian indices also diminished the safe-haven bids for the bullion. While the gold prices completely ignored the extended weakness in the US dollar against its major peers. The USD index trades -0.07% lower at 94.50, hovering close to multi-month troughs.
On the data front, the US factory orders and the labour market conditions report may have some impact on the gold markets, while the FOMC minutes due later this week remains the main risk event for the metal.
Gold Technical Levels
The metal has an immediate resistance at 1226/28 (5 & 10-DMA) and 1235 (round number). Meanwhile, the support stands at 1214.89 (50-DMA) below which doors could open for 1208/07 (previous lows).
(Market News Provided by FXstreet)
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