Spot gold prices experienced a volatile session on Wednesday, fluctuating around the $2,500 per ounce mark, as traders reacted to dovish signals from the Federal Reserve’s latest meeting minutes. The yellow metal initially dipped to an intraday low of $2,493.69 per ounce during New York trading hours but rebounded strongly, closing at $2,512.19 per ounce, down just 0.1% from the previous close.
The Federal Reserve’s minutes, released Wednesday, hinted at a possible rate cut in the near future, a move that provided support to gold prices. The minutes revealed that several Fed officials favored a rate cut in September, with some arguing that conditions were already ripe for easing during the July meeting.
Christian Borjon Valencia, an analyst at FXStreet, noted that gold prices remain stable above the $2,500 per ounce level, buoyed by the Fed’s dovish stance. Valencia highlighted that the Relative Strength Index (RSI) suggests bullish momentum, with the first resistance level for gold prices at $2,550 per ounce, followed by a potential rise to $2,600 per ounce if the trend continues.
Conversely, if gold weakens, Valencia pointed out that prices could fall below $2,500 per ounce, with the next support level at $2,483 per ounce, corresponding to the July 17 high. Further declines could see gold testing the May 20 high of $2,450 per ounce, with the 50-day simple moving average (SMA) at $2,395 per ounce serving as a longer-term support.
Looking ahead, traders will focus on upcoming U.S. economic data, including initial jobless claims, PMI data, and housing market figures, which are set to be released on Thursday. Additionally, Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday will be closely watched for further clues on the central bank’s policy direction. 
