Gold weaker ahead of FOMC, around $1,220/oz

The ounce troy of the precious metal is posting decent losses on Wednesday, hovering above the $1,220 area ahead of the FOMC minutes.

Gold around 2-month lows

The yellow metal has managed to rebound from the earlier dip to $1,216, level last traded in mid-May, although it stays under pressure amidst a persistent buying bias around the buck.

Gold faded the initial optimism following heightened concerns over the geopolitical situation around North Korea after the recent missile launch, while it remains vigilant on the upcoming meeting between the UAE, Saudi Arabia, Egypt and Bahrain regarding sanctions against Qatar.

Looking ahead, Bullion should remain under scrutiny as the FOMC will publish its minutes from the June meeting, with the likely timing of the reduction of the Fed’s balance sheet and further tightening by the Fed on top of the investors’ agenda.

Gold key levels

As of writing Gold is losing 0.17% at $1,221.60 and a breakdown of $1,216.94 (low Jul.5) would expose $1,214.30 (2017 low May 9) and finally $1,196.20 (low Mar.10). On the other hand, the next resistance emerges at $1,232.20 (200-day sma) followed by $1,234.24 (76.4% Fibo of the May-June up move) and then $1,240.46 (10-day sma).