Gold Prices Standstill Before FOMC Minutes – Triple Top In Focus

In the absence of top-tier economic events, gold remained range bound and continued to consolidate in a narrow trading range of $1,288 – 1,294. Anyways, the trading range is very likely to get violated during the U.S. session on the release of FOMC meeting minutes. Here’s what to expect…

FOMC Meeting Minutes

We spoke about FOMC meeting minutes and expectations in FX Leaders May 23 – Economic Events Brief. In the prevailing FOMC minutes, I’m expecting to hear about June’s rate hike which I believe is already priced in.

So what happens if FOMC fails to communicate about June rate hike? Gold can soar dramatically on the weakness in the greenback. Brace yourself…  

Gold’s Technical Analysis

On the 2- hour chart, gold has tested $1,294 a number of times, making this level a triple top pattern. This pattern is known for a bearish reversal. But at this point, I can’t say much about it as the FOMC meeting minutes will be a trendsetter today.

At present, gold is holding below a solid resistance level of $1,294 and the violation of this can bring more buys in the bullion market until $1,298 and $1302. Whereas, the support prevails at $1,282.

Support     Resistance

1288.69        1295.11

1286.71         1297.09

1283.5           1300.3

Key Trading Level:    1291.9