By: DailyForex
Gold prices had an excellent session on Wednesday, as gains moved towards the resistance level at $1321 an ounce, the highest level in 3 months. After the release of the minutes of last Federal Reserve meeting, the gold prices crashed towards $1306 an ounce at the start of Thursday’s trading. the Federal Reserve maintained the plan of 3 interest rate raise for 2018. The minutes suggested that the low inflation level in the country is transitional and that the job market strength will support facing its implications. The decision makers at the Federal Reserve agreed largely last month that the US tax reform would benefit the economy, however, they split in terms of whether the resulting growth will lead to faster rate raise this year.
Expectations are more than 98% that the Federal Reserve will increase the rates this month. Before the release of the minutes, the US Industrial ISM recorded a new record level against expectations, and the constructions spending increased strongly as well.
Technically:
Gold prices will have a strong bullish move today if the prices moved towards the resistance levels at 1315 and 1325. Settling on top of the $1300 peak will contribute to a successful move to those levels. The nearest support levels for gold are currently at 1272, 1285 and 1295. We still prefer buying the gold from every bearish level.
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On the economic data front today:
The gold will have full focus on the dollar’s level while awaiting service sector numbers from the Eurozone and the UK. From the US, there will be a release of the non-farm employment change from ADP, unemployment claims. The gold will also monitor updates regarding renewed geopolitical fears regarding North Korea, BREXIT or Trump’s economic policy.