Gold Turns Range Bound Ahead of FOMC Minutes

Gold prices were on the back foot in early dealings on Wednesday, hovering near the lowest levels of the year as investors wait for minutes from the Federal Reserve’s meeting for clues on the outlook for U.S. interest rates. The XAUUSD pair however rebound from Tuesday’s loss during Asian market hours and is currently trading around $1294/95 price range. The Fed will release minutes of its most recent policy meeting at 1800 GMT, which may provide further insight into the conversation had by policymakers ahead of their May 2 decision to keep interest rates unchanged. Positive outlook from Fed minutes would result in Gold price going down further as demand for greenback keeps increasing over prospect of multiple rate hikes this year while a dovish outlook would help Yellow metal reclaim $1300 price range.

Gold Prices Range

Silver continues to defy market’s trend as the price continues to remain constant at $16 seeing only minor change across the day despite US dollar gaining strength. Silver market on global level is relatively small when compared to its counter parts gold and Oil. There are very few players around and the price is almost always controlled by investors / traders with deep pockets as any major change in silver price is always accompanied by large stakeholders disproportionately by buying or selling in very large quantities. And Investors of Silver have chosen to leave it undisturbed regardless of their approach towards other instruments. Silver Price is expected to remain within $16 price band during today’s session.

While Crude Oil Price picked up during Tuesday’s European session hitting 2018’s high, the momentum for WTIUSD slowed down in American market hours s investors turn cautious and refrain from placing any directional bets ahead of the meeting of the joint technical committee of OPEC and non-OPEC nations which resulted in Oil price falling back to $71 price range. Yesterday’s bearish API report, showing an increase in gasoline stockpiles however the losses appear capped amid concerns over falling output in Venezuela while potential US sanctions on Iran also keep the prices somewhat buoyed. Investors currently await fresh developments from the OPEC meeting due later today and are also focusing on Crude Oil inventory and the EIA crude stockpiles data scheduled to release later today for fresh near-term trading impetus.