Gold jumps above $1280 following FOMC minutes

Spot gold was moving to the upside before the release of the FOMC minutes and then jumped, breaking above $1280. The value of the ounce reached a 2-day high at $1283. It remains near the highs, holding a strong bullish tone. The yellow metal erased yesterday’s losses of more than $10 and now it's aiming toward $1285. 

Earlier today, gold found support slightly above yesterday’s low at $1267 and bounced to the upside. The move higher came after US President Trump tweeted: “Rather than putting pressure on the businesspeople of the Manufacturing Council & Strategy & Policy Forum, I am ending both. Thank you all!”

The minutes added more pressure to the US dollar and boosted gold further to the upside. At the July Fed meeting “most” officials backed a move regarding the balance sheet at an upcoming meeting; “several” considered that inflation risks could be to the downside while “some” expressed concern about weak inflation and argue or patience. FOMC members mentioned that rising equity prices eased financial conditions while they saw a fall in long-term inflation expectation as something undesirable. 

FOMC Minutes: Policymakers agreed a fall in longer-term inflation expectations would be undesirable

XAU/USD Levels to watch 

To the upside, resistance levels might lie at 1285, 1289 (Aug 14 high) and 1295 (Jun high). On the flip side support, could be located at 1274 (Asian session high), 1270 and 1267 (Aug 15 & 16 low).