The price of gold extended upside movement on Wednesday, increasing the value of precious metal to more than $1110 ahead of some key economic events that are scheduled later in the New York session. The technical bias remains bearish because of a Lower Low and Lower High in the recent wave on daily chart.
As of this writing, the yellow metal is being traded at $1116.00 an ounce. A major support may be noted near $1100-$1107, the confluence of 23.6% fib level as well as psychological number and then $1077, the swing low of the last major dip as demonstrated in the following daily chart.
On the upside, the pair is expected to face a hurdle near $1126, the 38.2% fib level ahead of $1141.13, the 50% fib level and then $1156, the 61.8% fib level. The technical bias will remain bearish as long as the $1205 resistance area is intact.
The Federal Reserve is due to release the minutes from the recent Federal Open Market Committee (FOMC) meeting today during the New York evening session. Investors will be eyeing the FOMC minutes very closely for clues about the increase in Fed’s benchmark interest rate. A hawkish stance regarding interest rate hike would incite strong selling pressure in the price of gold and vice versa. Not to mention, the release of FOMC minutes will follow the US Inflation News.
Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy if we get another bullish pin bar or bullish engulfing candle on four-hour timeframe following the release of FOMC minutes.