Gold extends recovery move, Fed minutes eyed for fresh impetus

Gold edged higher for the second straight session on Wednesday and is now trading back above $1160 level, despite of a mildly positive greenback.

Currently hovering just below yesterday's over 2-week high, a mild US Dollar retracement from session peak seems to be the only factor driving the precious metal higher. However, it would be interesting to see if the yellow metal manages to sustain its recovery strength amid prevalent risk-on mood, as depicted by rise in the US treasury bond yields and buoyant sentiment surrounding equity markets, which tends to dent demand for safe-haven assets, including gold.

Investors on Wednesday would keenly await for the release of FOMC meeting minutes, which would provide fresh clues for the greenback's next leg of directional move and eventually drive dollar-denominated commodities - like Gold. 

Technical levels to watch

Immediate resistance on the upside is seen at $1164-65 region above which the metal is likely to accelerate the recovery move further towards $1170 resistance ahead of its next major hurdle near $1183-85 region. On the downside, weakness below session low support near $1156 level is likely to get extended towards $1150 support, which if broken would expose $1140 support area.