Chart of the day - GOLD (23.11.2022)

FOMC minutes is a key release of the day and the document will be published at 7:00 pm GMT. Policy statement that was released after the latest FOMC meeting (November 1-2, 2022) was seen as dovish as it included a hint that Fed will take into account a lag with which policy changes are impacting the economy, and some saw it as paving ground for slower rate hikes. Nevertheless, Powell was not in any way dovish during a post-meeting press conference and strongly hinted that rate hikes will continue and terminal rate may be above September's projections. Those suggestions led to a completion of the earlier upward move on indices and downward move on USD with Wall Street finishing that session with a big drop. USD jump negatively impacted gold.

Taking a look at GOLD at H4 interval, we can see that the price of the precious metal is nearing an important support zone in the $1,728 per ounce area. This zone is marked with previous price reactions, lower limit of local market geometry and 100-period EMA (blue line). Should today's FOMC minutes reinforce hawkish message delivered by Powell during post-meeting press conference and by other Fed members since, gold may test the zone and attempt to break lower. A break below this area would hint at a bearish reversal to a short-term trend.

Source: xStation5