On Thursday, gold traded mostly sideways above 1,270 support and below 1,275 resistance, after following the FOMC meeting minutes from the Federal Reserve.
Federal Reserve policymakers announced, their patient stance to monetary policy action could continue for “some time” as an inflation slowdown and the U.S. - China trade war continues to play.
As you know, the trade war has continuously increased, traders focus is likely to stay on the Sino-U.S. trade war now, and they have triggered demand for the dollar which could put pressure on the gold prices.
Prices of the yellow metal stayed little changed as the minutes held no surprises overall. Despite that, gold prices are peaking out of the upper resistance level of 1,275.
On the 4 hour timeframe, gold has closed a bullish engulfing candle which is suggesting a strong bullish bias of traders. On the upper side, gold may find an immediate resistance around 1,280 and 1,289 above it. While support stays at 1,275 (the same level that worked as support earlier) and 1,268.
R3: 1287.92
R2: 1280.79
R1: 1277.74
Key Trading Level: 1273.66
S1: 1270.61
S2: 1266.53
S3: 1259.4
Consider staying bullish above 1,275 with an initial target of 1,289 and then 1,286 if gold manages to violate 1,280. All the best!
