Gold rises modestly after Fed’s minutes but remains below $1200

• Gold holds near $1,200 but showing fading momentum. 
• Greenback retreats modestly after FOMC minutes. 

Gold rose from $1,195/oz to $1,199 after Fed’s minutes supported by a slide of the US dollar across the board. The decline so far has been modest and gold failed to break the $1,200 barrier. 

As of writing, XAU/USD was trading at $1,196 around the same level it closed yesterday. It holds a bullish tone but the strength at the moment and even immediately after the minutes, was not enough to push the yellow metal on top of $1,200. 

Regarding the minutes, according to FOMC minutes, indicators of long-term inflation are little changed and remain balanced. Many members see another rate hike likely appropriate soon. 

XAU/USD Levels to watch 

To the upside, immediate resistance is seen at daily highs at $1,202 followed by $1,207 and $1,215. On the flip side, support levels might be located at $1,194 (US session low), $1,187 (Aug 21 low) and $1,182.