Gold climbs to $1285 area as USD loses traction
- US Dollar ındex extends losses below 96 in the early NA session.
- Atlanta Fed President Bostic says Fed need to be patient with further rate hikes.
- Wall Street looks to start the day modestly higher.
With the greenback coming under a renewed selling pressure in the last hours, the XAU/USD pair recovered its daily losses and turned flat on the day near $1285.
Earlier in the day, major European equity indexes extended their rally to reflect a risk-on mood in the markets, which made it difficult for the precious metal to find demand. However, ahead of the day's critical event, FOMC meeting minutes, the US Dollar Index lost its traction and turned south as Atlanta Fed president Raphael Bostic adopted a dovish tone similar to his colleagues. Speaking at an event organised by the Chattanooga Area Chamber of Commerce, Bostic argued that the Fed needed to be patient and wait for clarity about the direction of the economy and the risks to the outlook.
Later in the session, FOMC members Bostic and Rosengren are also scheduled to deliver speeches. Nevertheless, investors are likely to refrain from making large bets before the FOMC releases its December meeting minutes at 19 GMT.
Meanwhile, the S&P 500 Futures add around 0.5% and point to a positive start on Thursday, which could cap the pair's upside.
Technical levels to consider
The pair could face the first support at $1279/$1280 (Jan. 8 low/daily low) ahead of $1273 (20-DMA) and $1264 (Dec. 26, 2018, low). On the upside, resistances align at $1290 (Jan. 8 high), $1295 (Jan. 7 high) and $1300 (psychological level).