- Gold edged lower on Wednesday and erased the previous day’s positive move to over one-week tops.
- A modest USD bounce, the upbeat market mood prompted traders to take some profits off the table.
- The ongoing fall in the US Treasury bond yields might help limit the slide ahead of the FOMC minutes.
Gold maintained its offered tone through the mid-European session and was last seen hovering near the lower end of its daily trading range, around the $1985 region.
The precious metal came under some selling pressure on Wednesday and reversed the previous day's positive move to over one-week tops; around the $2015-16 region. Given the recent strong rally of over $150 from multi-week lows, a combination of factors forced investors to take some profits off the table and led to the modest pullback.
This coupled with a modest US dollar rebound from the lowest level since April 2018 exerted some additional downward pressure on the dollar-denominated commodity. The USD uptick lacked any obvious fundamental catalyst and could be solely attributed to some repositioning trade ahead of the release of the latest
FOMC meeting minutes.