Gold turns a blind towards cautious Fed

FXStreet (Mumbai) – Gold prices stayed largely unchanged after the Fed minutes showed policy makers are concerned about concern about Greece and China and are of the view that “conditions for policy firming had not yet been achieved.”

Muted reaction in the markets

There has been a muted reaction to the Fed minutes, which were widely expected to show concerns regarding the global turmoil. The minutes showed policymakers need to see more data in order to determine that the criteria for beginning policy normalization had been met. A slightly dovish tone of the minutes failed to affect Gold or the US dollar.

The yellow metal currently trades at USD 1161/Oz; up 0.74% for the day. Cautious Fed has decided to publish an “implementation note” which would communicate its actions as and when the tightening begins.

Gold Technical Levels

The immediate support is located at 1142.40, under which the metal could drop to 1130.40 (Nov 2014 low). On the flip side, a break above 1162.10 (June 5 low) could see the metal target 1170.00 (April low).

Gold prices stayed largely unchanged after the Fed minutes showed policy makers are concerned about concern about Greece and China and are of the view that “ conditions for policy firming had not yet been achieved.”

(Market News Provided by FXstreet)