Gold on the back foot as USD climbs ahead of Fed minutes

Gold extends its retreat from 20-DMA resistance and remains heavily offered in the mid-European session, on the back of broad based US dollar rebound.

Gold: FOMC minutes to confirm the recent Yellen’s dovish stance?

Currently, gold trades -0.47% lower at 1225.13, retreating slightly from fresh session lows of 1224.09. The yellow metal drops further into the negative territory in Europe, as the US dollar stages a solid rebound against its major peers from near weekly lows. Meanwhile, the USD index attempts 95 handle, recording a gain of +0.30% on the day.

Moreover, markets also book profits on their gold longs after the recent rebound, in a bid to reposition heading to the main risk event for this week, the FOMC minutes release.

Analyst from CMC Markets noted, "FOMC minutes could well open up some clarity on where the divisions on the committee are, particularly given that an expansion in the hawkish camp could present problems for Janet Yellen."

Gold Technical Levels

The metal has an immediate resistance at 1236.50 (20-DMA) and 1240 (round number). Meanwhile, the support stands at 1219.05 (50-DMA) below which doors could open for 1215/14 (previous lows).