Gold ticks higher after no surprises from Fed minutes

FXStreet (Mumbai) - Gold is showing signs of strength after the Fed minutes provided no hawkish surprises that markets were looking for, leaving little scope for fresh sell-off in the metal.

USD bulls disappointed?

The USD bulls were looking out for a clear hint at a December liftoff, but he minutes merely repeated the message echoed by the October statement that the doors remain open for a December rate hike and the decision is still data dependent.

Consequently, the USD index has not been able to do much, since a quick spike to 99.96 ran out of steam, pushing it back to 99.75 levels. Gold, thus hovers largely unchanged on the day around USD 1072/Oz.

A minor spike to the hourly 50-MA at 1075/Oz was quickly reversed, but the metal managed to hold around USD 1070 before turning higher once again.

Gold Technical Levels

The immediate resistance is located at 1075 (hourly 50-MA), above which the gains could be extended to 1080 (hourly 100-MA). On the lower side, the metal could find support at 1063.27 (daily low) and 1032.00 (Mar 2008 high).

EUR/USD modestly higher after FOMC

EUR/USD turned to the downside after the release of the Federal Reserve minutes but it remained moving without a clear direction. It printed a fresh 7-month low at 1.0616 after the release of the minutes, then bounced to the upside and peaked at 1.0653. It was trading at 1.0630/50, around the same level it had before the document.
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