Gold pared most of its gains after the FOMC meeting minutes. It hit a low of $3245 and is currently trading around $3276.
Gold prices dropped following the release of the May 2025 FOMC minutes as the minutes exposed Fed officials' doubt over the economic outlook because of tariffs and sustained inflation, therefore confirming expectations of maybe extended higher interest rates that lessened gold's attractiveness as a non-yielding asset and so promoted investor conservatism.
Shifting Rate Hike Expectations
According to the CME Fed Watch tool, the chances of a rate pause on the June 18th, 2025 meeting have increased to 97.70% from 94.60% a week ago.
Technical Analysis: Key Levels and Trading Strategy
Gold prices are holding below short-term moving averages 34 EMA and above 55 EMA and above long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3245 and a break below this level will drag the yellow metal to $3230/$3200/$3165/$3135/$3100/$3000. The near-term resistance is at $3300 with potential price targets at $3330/$3350/$3365/$3378/$3400/$3415/$3465/$3500.
It is good to sell on rallies around $3300 with a stop-loss at $3325 for a target price of $3200.
