“The Gold price reaction to the Fed Minutes could be limited, as traders could see it as outdated and choose to pay more attention to Friday’s United States Core PCE inflation – the Fed’s preferred inflation gauge.”
- Silver remains confined in a narrow trading band below the $22.00 mark, or the 100-day SMA.
- The technical setup favours bearish traders and supports prospects for a further near-term fall.
- A sustained strength beyond the 38.2% Fibo. level will negate the bearish bias for the Silver.
“The critical horizontal trendline support from the January 5 low at $1,825 could hold the fort, as Gold sellers are seen threatening the $1,827 round figure. The next target for Gold bears is envisioned at Friday’s low of $1,818 on a sustained selling momentum.”
“Gold buyers need to find acceptance above the $1,855 psychological level on the road to recovery, above which a new run-up toward the flattish 50-Daily Moving Average (DMA) at $1,865 cannot be ruled out. Fresh buying opportunities will likely emerge above 14 February, 2023 high at $1,877.”
Gold could revisit the 2023 low near $1820
Tuesday’s retracement in gold prices was accompanied by increasing open interest and volume and is suggestive that extra weakness lies ahead for the yellow metal. Against that, the precious metal could retest the YTD low at $1818 per ounce troy (Friday 17).