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Home » Featured » Gold Rises Slowly Ahead of FOMC Minutes

Gold Rises Slowly Ahead of FOMC Minutes

Posted by FXTimes in Featured - August 18th, 2015 7:30 am GMT


Spot gold added $2.00 yesterday, holding to its recent gains, but unable to extend its rally as the market entered wait-and-see mode ahead of critical US data next Wednesday.

The commodity advanced on tepid US manufacturing figures, but traded within Friday’s range, settling around $ 1,117.50 a troy ounce by the end of the day.

The latest rebound from multi-years low seems to be losing pace, as the daily chart shows that the Momentum indicator is turning south, but still above its 100 level, whilst the RSI indicator hovers around 53.

In the same chart, the 20 SMA heads slightly higher around 1,098.60, providing a strong intraday support in the case of a retracement.


Shorter term, the 4 hours chart shows that the price is unable to overcome its 20 SMA that now turns lower, whilst the technical indicators lack directional strength around their mid-lines.

At this point, the bright metal needs to extend beyond last week high of 1,126.70 to be able to resume its advance towards the 1,140 region.

Meanwhile the Australian dollar erased all of its intraday losses against the greenback, with the AUD/USD finding some intraday demand after bottoming at 0.7343 early in the American morning.


The pair is unchanged daily basis, and maintains a neutral tone, albeit compared with Friday’s one, the daily candle shows a lower high and a lower low, increasing the risk of a break lower.

The short term technical picture is neutral, as the 1 hour chart shows that the price moves back and forth around an horizontal 20 SMA, whilst the technical indicators also lack directional strength, laying flat around their mid-lines.

In the 4 hours chart, the price managed to recover above its 20 SMA in the last hours, but the indicator has lost its bullish slope, whilst the Momentum indicator heads lower, approaching the 100 level, and the RSI stands flat around 54.

Chances of a stronger decline will surge on a break below 0.7295, with scope then to retest the recent multi-years lows near the 0.7200 level.

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