Gold prices received a boost from dovish comments by Fed’s Mester that sent the dollar lower nearly across the board. Traders were at a loss as this central bank official used to be hawkish, which added to the upside pressure on the precious metal. The prices surged to fresh April highs above $1,346 on Wednesday and remain elevated despite some correction from the top of the extended bullish range.
Despite some overbought conditions, the yellow metal could extend the rally in the near term on the potentially dovish FOMC meeting minutes due later today. The Federal Reserve retreated from hawkish rhetoric last month that dominated in 2018. A likely confirmation of a more cautious and wait-and-see stance will cap the greenback further and thus could help the gold prices to at least remain in the positive territory.
In the longer term, the metal will continue to assess the developments between Beijing and Washington, and fresh signs of progress may keep a lid on bulls, but the lingering doubts in making a deal soon will allow the bullion to refrain from changing the upside trajectory. In the case of profit-taking, the prices will first target the $1,334 figure.