Gold edges higher for second straight session, Fed minutes awaited
• Moves back above 100-DMA hurdle.
• Risk-on mood capping strong up-move.
• FOMC minutes could determine the next leg.
Gold prices edged up for the second consecutive session on Wednesday and built on its steady recovery back above 100-day SMA.
A weaker tone around the US Dollar, led by sliding US Treasury bond yields was seen lending support to dollar-denominated commodities - like gold. The up-move, however, seemed lacking strong conviction amid global risk-on trade, which tends to weigh on the precious metal's safe-haven appeal.
Investors on Wednesday keenly awaited the release of minutes of the FOMC meeting held in November, which might provide some fresh insights over the central bank's monetary policy outlook post-December.
• FOMC minutes preview: No surprises expected - HSBC
With December Fed rate hike action fully priced in, investors will want to know what policymakers are thinking about the rate situation and how they might act going forward, which might eventually provide a fresh directional impetus for the non-yielding yellow metal.
Ahead of the key event risk, the release of US durable goods orders would also be looked upon to grab some short-term trading opportunities.
Technical levels to watch
A follow-through momentum is likely to confront immediate resistance near $1290 level, above which the commodity could make a fresh attempt to surpass $1294-95 supply zone and reclaim the $1300 handle.
On the flip side, weakness back below the $1281 region (100-day SMA) could drag the metal back towards $1276 horizontal support en-route $1270 level.