Be Watchful Ahead of U.S. FOMC Meeting Minutes; Jan 06, 2021

U.S. FOMC Meeting Minutes

U.S. will release FOMC meeting minutes around 1900 GMT/0030 IST. It’s a detailed record of the FOMC’s most recent meeting which was held on Dec 16, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.

The key highlights of the last FOMC Statement (Dec 16) were as below:

• The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.
• The Committee expects to maintain an accommodative stance of monetary policy until desire outcomes are achieved.
• Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month.

On the basis of the FOMC statement, gold remained highly volatile and gave $17 downside up movement. From that day onwards, gold rises progressively and today touched $1,959 mark too. Unfortunately, gold fails to break key resistance at $1,962 mark and took reversal. Along with the technical, fundamental news are also responsible for the extreme volatility.

U.S. has just released ADP job data with negative numbers.

Further during U.S. session, U.S. will release Final Services PMI data and Factory Orders data around 1500 GMT. The Actual results of the above indicators may bring volatility in the U.S. dollar. On the other hand, one has to keep in mind about the U.S. Senatorial Election Results too.

Technical View:

XAU/USD (Gold): Gold weakens drastically ahead of U.S. FOMC Meeting Minutes. The pair made intraday high at $1,959 mark and low at $1,926 mark. On the top side key resistances are seen at $1,962, $1,972, $1,976 and $1,985 mark respectively. Alternatively, current downside movement will drag the parity down towards key supports around $1,927, $1,920, $1,917, $1,912, $1,908 and $1,902 mark respectively.

Take a look and do trade wisely!
Good Luck