Gold price prints fresh session high after Fed minutes

San Francisco (Aug 19)  Gold prices strengthened to a fresh session high of USD 1131.30/Oz after the Fed minutes revealed most officials believe the economy is still not ready for the rate hikes.

Gold strengthens, 2-yr treasury yield dips

The slightly dovish tone carried by the minutes pushed the 2-yr yield, which mimics rate hike expectations, lower to 0.657%; down more than six basis points. The drop in the rate hike bets represented by the 2-yr yield helped the yellow metal extend gains to USD 1131.30/Oz.

However, the yellow metal is struggling to extend gains, hovering just below key resistance at USD 1132.90 (Nov 2014 low). Meanwhile, the USD index weakened 0.56% to near 96.40 levels.

Gold Technical Levels

The metal now hovers around USD 1130/Oz levels. The immediate resistance is located at 1132.90 (Nov 2014 low), followed by a resistance at 1144.30 (March 2015 low). On the other hand, support is seen at 1126.30 (previous week’s high) and 1115.50 (daily low).

Source: FXstreet