Federal officials are unified in their objective to attain a 2% inflation target, but differences arise regarding the approach they should take going forward.

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• Fed officials unanimously aim to achieve the 2% inflation target, but divisions emerge on the path forward.

The pair currently trades last at 1894.96.

The previous day high was 1911.77 while the previous day low was 1896.49. The daily 38.2% Fib levels comes at 1902.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1905.93, expected to provide resistance.

Gold price treads water after the latest Federal Reserve’s (Fed) meeting minutes showed board officials were split between raising rates or keeping them unchanged at the July meeting. After the data release, XAU/USD trades volatile, hit a fresh 7-week low at $1,895.48 and is seesawing at around the $1,900-$1,890 area.

The minutes revealed a unanimous determination among all Federal Reserve officials to persist in their objective of lowering inflation to the targeted 2%, while most participants assessed that upside risks on inflation would require additional tightening.

However, a division within the Fed board became evident regarding monetary policy, as a “few” members advocated for maintaining the existing interest rates. Among them, Atlanta’s Fed President Raphael Bostic consistently voiced his stance in favor of unchanged rates.

The minutes showed that while the economy has displayed resilience, concerns persist about potential downsides to economic activity and possible risks of an increase in the unemployment rate.

Federal Reserve officials agreed that forthcoming rate decisions would be based on a comprehensive assessment of incoming data while adopting a cautious approach in the upcoming months.

As the minutes were released, the XAU/USD dropped sharply towards the S1 daily pivot point at $1,894.89 and bounced off that level. At the same time, US Treasury bond yields climbed with the 10-year benchmark note edging toward 4.246%, while the greenback hit a daily high of 103.457 before trimming some of its gains.

If XAU/USD achieves a daily close below $1,900, that could expose March’s 13 daily low of $1,867.17 as the next support, ahead of dropping towards the latest swing low of $1,809.48. Contrarily, if buyers reclaim $1,900, that could expose the 50-hour Moving Average (HMA) at $1,904.34, slightly above the daily pivot point.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1898.12 at the time of writing. Pair opened at 1901.84 and is trading with a change of -0.2 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1941.87, 50 SMA 1939.06, 100 SMA @ 1965.14 and 200 SMA @ 1904.22.

The previous day high was 1911.77 while the previous day low was 1896.49. The daily 38.2% Fib levels comes at 1902.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1905.93, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1894.96, 1888.09, 1879.68
• Pivot resistance is noted at 1910.24, 1918.65, 1925.52

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