Gold recovers to turn flat at $1345, awaits FOMC minutes for fresh impetus

Having retested 20-day SMA support near $1340 region, Gold rebound and erased all of its early losses to currently trade nearly unchanged from yesterday's, around $1345 level.

Early greenback recovery from 2-month lows, as measured by the overall US Dollar index, weighed on dollar-denominated commodities and forced the yellow metal to extend its retracement from a 2-week high touched on Tuesday. However, the precious metal managed to recover its lost ground on weaker sentiment surrounding European equities. 

The commodity, however, remained confined in a short-term trading range as buoyant equity markets have been denting the metal's safe-haven demand while weaker US Dollar has been acting as a supportive pillar. Hence, today's FOMC meeting minutes, slated for release later during US trading session, becomes the key driver for the metal's near-term direction.

Technical levels to watch

On a sustained move above $1350 level, the commodity seems to make a fresh attempt to surpass $1357-58 resistance and head towards testing $1365 barrier, above which the momentum could lift it back towards post-Brexit highs resistance near $1375 region.

On the flip side, 20-day SMA near $1340 region remains immediate support to defend, which if broken decisively seems to drag the metal immediately towards $1330 intermediate support before aiming towards retesting an important support near $1315 level.