Gold clings to $1,200, FOMC weighs

New York (Apr 8)  The troy ounce of the precious metal is now accelerating its intraday correction lower, putting the critical $1,200 mark to the test.

Gold weaker on USD

The yellow metal intensified its selling mood after the FOMC minutes showed some members pushed for a rate hike as early as June and that almost all members agreed to drop the previous ‘patient’ stance. Members also argued that the Fed could start the tightening cycle even before increases in core prices and weigh inflation.

Gold prices are now retreating for the second consecutive session after reaching multi-week tops on Monday beyond $1,220/oz.

Gold key levels

The metal is now losing 0.76% at $1,200.04 and a breach of $1,197.13 (low Apr.8) would aim for $1,194.80 (low Apr.2) and then $1,180.50 (low Apr.1). On the other hand, the initial resistance aligns at $1,236.79 (high Feb.16) ahead of $1,245.91 (high Feb.10) and finally $1,285.80 (high Feb.3).

Source: FXstreet