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Gold rises on dovish Fed minutes, forms triple bottom

FXStreet (Mumbai) - Gold prices have gained more than 2% since the release of a dovish Federal Reserve (Fed) minutes yesterday. The metal is trading 1.71% higher at USD 1226/Oz at the time of writing.

The real support to the Gold prices comes from the US dollar, which has weakened across the board. Moreover, the Fed minutes expressed concerns regarding the disinflationary impact of the strength in the USD. The US Dollar index currently trades 0.20% lower at 85.20. Meanwhile, weakness in the US treasury yields also help Gold gain strength.

Technically, the Gold prices have bounced back from the support around 1180, a level last seen in late June and late December 2013. Prices have now formed a triple bottom.

Gold technical level

Gold has an immediate resistance of 1235.4 (high of 23rd Sep, 2014) while the support is located around 1220 levels.

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