Ahead of the Fed Minutes' release, gold settled flat.
Gold saw a little decrease of -0.09% at 62,108 in the closing hours while investors anticipated the release of the Federal Reserve's meeting minutes. According to the minutes, the majority of policymakers voiced worries about the dangers of cutting interest rates too soon and emphasised the uncertainties around the length of the current monetary policy stance. The difficulty in estimating the duration of a restrictive policy required to meet the Fed's 2% inflation target was brought up by participants. The amount of base points that traders are expecting to be trimmed by the Fed this year has decreased from 150 basis points to 75 basis points, according to market projections.
The uncertain economic picture is reflected in the Fed's cautious approach, which places special emphasis on inflation risks for the upcoming year. Fed Chair Jerome Powell highlighted the US economy's unexpected resilience, which is being driven by strong consumer demand and improving labour markets. Due to a 49% year-over-year increase in export volumes, Swiss gold exports soared in January, hitting their highest point since December 2016. This notable increase in monthly exports from the largest refining and transit centre for bullion in the world was mostly driven by strong sales to China and Hong Kong.
From a technical perspective, the gold market saw long liquidation, as open interest fell by 0.61% to close at 13,374. The market is finding support at 62,010, with a probable test of 61,915, despite a price decrease of -59 rupees. Testing might occur at 62,375 in the event of a breakout, with resistance most likely at 62,240.
