Gold hits highest since late March at $1310 ahead of Fed’s minutes

• XAU/USD accelerates to the upside during US session. 
• Fed to released FOMC minutes of its March 19-20 meeting. 
• UK PM May address EU leaders at the summit. 

Gold extends gains and continues to move to the upside. The rally that started last week from levels near $1280 reached a new high and remains intact. 

Weaker US Dollar, lower US yields

Ahead of the FOMC minutes, the US Dollar is retreating across the board, favoring the move to the upside in gold. The ounce reached at $1310 the highest level since March 28 and ahead of the released of the Fed’s minutes it is hovering around the highs. In a few minutes, the Federal Reserve minutes will be out. At that meeting, the central bank kept rates unchanged as expected, and it was defined as a “dovish” by market analysts. 

The greenback is under pressure after today’s CPI data and also affected by lower US yields. The 10-year fell to 2.46%, to the lowest since April 1. Despite the modest decline in equity prices, the US dollar is falling sharply against emerging market currencies. 

XAU/USD Levels to watch 

Gold gained momentum today after breaking the $1305/05 resistance, now support. The bullish bias remains intact and will likely remain in place as long as price holds above $1300. 

To the upside, resistance levels might be located at $1312, followed by $1319 (Mar 27 high) and $1324 (Mar 26 high). On the flip side, support could be seen at $1306 (Apr 9 high), $1300 (Apr 10 low) and $1294 (Apr 3 & 4 high).