Gold Consolidates and Awaits FOMC Minutes Before Making Next Move

After experiencing a large pullback in the last two days to the 1728 level,  precious metal broke out of the 1738 level and made its way up to the 1750 level where it is now consolidating.

The Case of Moderna’s Vaccine Hope

Yesterday, Moderna reported that the first trials of their Covid-19 vaccine were positive. However, scientists later disputed that the data provided by Moderna during their Monday announcement was incomplete.

This prompted investors to put their money in the precious metal instead. That was one of the key reasons as to why Gold made a pretty sharp move upward earlier.

Gold’s Increase In Relation to the US Dollar

As Gold’s movement moves in an inverse direction to the USD, a strong demand for the USD and an increase in US Equity futures stopped the movement of the precious metal in its tracks. However, Gold didn’t seem to yield that much because the low US Treasury Bond movement gave more support to the precious metal.

Fate of the Precious Metal In the US Session

While Gold was able to make a substantial recovery due to Moderna’s waning vaccine hope and the lowering of US Treasury Bond yields, a key event that will decide the movement of the metal is the release of the FOMC minutes come the US Session.

This will decide whether Gold will continue to inch higher or continue with its range bound movement.

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