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Gold prices fell below the $4,600 support level amid heavy selling pressure as traders anticipate the upcoming FOMC minutes. A bearish trend line is forming on the 4-hour chart with resistance at $4,660, signaling potential further declines. Meanwhile, WTI crude oil rose above $105, and EUR/USD is expected to test 1.1550. The FOMC minutes, scheduled for release soon, could influence market sentiment due to expectations of continued Fed tightening.
The FOMC's policy decisions directly impact gold's performance, as higher interest rates typically weaken gold's appeal as a non-yielding asset. Traders are closely watching the minutes for clues about the Fed's stance on inflation and rate hikes. A dovish tone could support gold, while a hawkish outlook may intensify selling pressure. The upcoming event adds volatility to the market, with key technical levels under scrutiny.
For Gulf investors, the FOMC minutes are critical as they affect USD liquidity and global risk appetite. A weaker dollar from Fed easing could boost gold demand in the MENA region, where gold is a popular hedge against inflation. Traders should monitor the $4,600 support and $4,660 resistance levels for potential trend reversals. Additionally, oil prices and EUR/USD movements may offer secondary insights into broader market dynamics.
