Gold encounters resistance ahead of Fed minutes: Traders on defensive amid anticipation of volatility
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Gold pares gains ahead of the Fed minutes
Gold is marginally lower on the day after running into resistance around $1,930-$1,940. This was the first big test as part of the recovery we’ve seen over the last week and so far it’s fallen short. We may see another run at it, early profit-taking may have just taken the wind out of the sails, although that in itself isn’t a great sign.
It may well be that traders have an eye on the FOMC minutes as a potential catalyst that triggers a lot of volatility in the yellow metal so are taking a more defensive stance in anticipation. The jobs on Friday could be more influential though as the minutes are unlikely to tell us something game-changing, while a weak jobs report could signal a significant shift.
