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Gold comatose ahead of FOMC minutes

FXStreet (Mumbai) - Gold prices trade dead flat around USD 1070/Oz levels as traders await FOMC minutes, which could reinforce the Fed liftoff bets.

At make or break level

The metal currently trades around USD 1071/Oz, which is the long term trend line support. Increased odds of Fed tightening since late October has already seen the metal shed more than $100. A final confirmation about December liftoff may come through the Fed minutes today.

It remains to be seen if the markets continue to buy USD and ditch the metal or we see a “Buy the rumor, Sell the fact trade” in case the minutes confirm a December liftoff.

Gold Technical Levels

A failure to sustain above 1071 would open doors for a re-test of 1063.27 (daily low). A break below the same would expose 1032.30 (Mar 2008 high). On the other side, resistance is seen at 1078.41 (5-DMA) and 1082.31 (hourly 50-MA).

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