Gold prices bounce back on Wednesday as President Donald Trump urged bipartisan cooperation on overhauling US immigration policies and rebuilding infrastructure in an address to Congress on Tuesday night.
US gold futures were up 0.2 per cent at $1,339.60 per ounce.
Traders are cautious ahead of a slate of events this week, including the Fed monetary policy meeting that ends on Wednesday and a US jobs report on Friday that will include data on nonfarm payrolls and average hourly earnings.
The Federal Reserve is expected to leave interest rates unchanged on Wednesday while signaling a gradual tightening of monetary policy later this year as the U.S. economy continues to expand and job gains remain solid.
The Fed is due to release a statement at the end of its latest two-day policy meeting at 2 p.m. EST. The policy meeting is Fed Chair Janet Yellen’s last as head of the central bank.
The market will keep an eye on the Fed policy and its impact on the dollar.
The US Treasury 10-year note yield touched its highest in nearly four years overnight at 2.733 per cent, while 30-year bond yield climbed to its highest since May 2017.
On the technical charts, Gold prices bounced back after testing the middle band of the Bollinger bands at $1334.72. Currently the price action is trading above all the moving averages (9day, 20 day, 50 day, 100 day and 200 day). The RSI is at 58.37 and the MACD is below the signal line.
Buy digital Call options between 1339 and 1344, valid until 23:00 January 31st 2018