Gold Trades Strong Ahead Of Fed

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Gold Trades Strong Ahead Of Fed

Gold Trades Near $2030 Ahead Of Fed Minutes

Gold (XAU/USD) is seen near $2030, which is a multi-day high and highlights the strength of the yellow metal against the greenback. The sudden strength of Gold stems from the fact that Fed minutes are just around the corner.

While the Gold is showing strength, the weakness in the bond yields is keeping the greenback under pressure. This has enabled the Gold to capture the important 21 SMA (D1 chart) seen near the $2025 level. The RSI indicator, a measure of trend strength, also suggests that Gold is bullish.

Gold Looks Towards $2050 Level

Against this backdrop, Gold is en route towards the $2033 level, followed by the resistance at $2050. The $2033 resistance is dynamic as it coincides with the 50 SMA on the D1 chart.

According to one expert, a break above these resistance levels will allow the Gold to target the $2100 resistance zone. After all, that's the most reasonable target after the $2000 round figure.

But if the Fed meeting minutes do not favour Gold, it will mean that the bears will reclaim the 21 SMA once again. In that case, the next target on the way down will be $2015 and then $2000. It is also important to note that the 100 SMA is near the $2002 level.

The bottom line is that Gold is on its way to ending the 5th day in green and is already sitting at its daily highs. On the contrary, the greenback is having a hard time after the recent data releases and the upcoming Fed meeting minutes.

Another factor pushing the greenback lower is the fear that the US government is moving towards another shutdown. The government will need to pass a bill from the House if it wants to avoid a complete shutdown next month.

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