Crucial Test for Gold as Fed Report Awaits

The precious metal has come under pressure early this week and is near important support.

Gold’s Elevator Ride Troubling                                

Gold is near 1326.00 after suffering another sell-off. The precious metal has been on a roller coaster like ride mid-term and proven difficult to trade.

Gold is near important support and should it falter the commodity could test the 1316.00 juncture, while resistance looks to be 1333.00 short terms. Traders need to remain on their toes for fast conditions which could develop in the coming hours. 

Consolidated Range in Gold since January

Gold’s long-term range shows a rather consolidated formation since January. And analysts are wondering if support will hold and upwards momentum enjoyed since December will build due to a perception inflation is developing.

Today’s Federal Reserve Meeting Minutes report will impact the U.S Dollar and Gold is likely to become choppy, but traders with patience and deep pockets may remain buyers.

In the short term, we believe Gold may be positive. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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