Gold trims losses on broad based USD selling

Gold backed off from session lows as US desks are offering greenback across the board ahead of the Fed minutes release.

Eyes Fed minutes

The sell-off in the USD may be due to expectations of dovish Fed minutes. Markets seem unconvinced by Fed speak off late which suggests possibility of two rate hike and expect minutes to show consensus among policymakers over the delay in next rate hike.

Consequently, the dollar index, which was trading 0.40% higher on the day above 95.00, now trades largely unchanged on the day around 94.68. Thus, metal recovered from the low of $1216.60 to trade around $1220 levels.

Gold Technical Levels

Acceptance immediate support at $1219.05 (50-DMA) would open doors for a slide to $1207.69 (Mar 28 low) and 1200 levels. On the higher side, violation at $1244.12 (Mar 30 high) would expose $1253.32 (Feb 24 high) and $1260 (Mar 22 high).