BREAKING: Gold hits resistance despite upbeat Fed

Rate unchanged for longer time unless circumsatnces change
A few policymakers raised concerns that keeping rates low for a long time could exacerbate imbalances in financial sector
Fed saw risks to outlook as tilted to the downside but that some risks had eased in recent months
Lower risks owed to easing US-China tensions, along with lower probability of no-deal Brexit
Discussed expectations to gradually transition away from active repo operations next year
Some repos might be needed at least through April

The minutes are slightly upbeat but given no imminent action markets are taking the document calmly. Indeed the EURUSD has recovered today’s losses and gold remains close to the daily highs – mostly as a result of Iran-related risks and dismal US data (ISM report). Speaking about gold, it looks like we are set for a test of September highs ($1557).

 

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