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Gold price<\/a> (XAU\/USD) trades lower by about a quarter of a percent in the $2,410s on Wednesday as a shift in the outlook<\/a> for interest rates \u2013 both in the US and globally \u2013 weighs on the precious metal.\u00a0<\/p>\n Recent comments<\/a> from US Federal Reserve (Fed) policymakers repeated the mantra that insufficient progress had been made in bringing inflation down to the Fed\u2019s 2.0% target to warrant a lowering of interest rates.\u00a0<\/p>\n Their views<\/a> weighed on the Gold price which, as a non-yielding asset, tends to perform poorly when interest rates are high due to the increased opportunity cost of holding Gold.<\/p>\n Gold price might be further impacted when the Fed<\/a> releases the FOMC Minutes from\u00a0its latest policy meeting on Wednesday at 18:00 GMT.\u00a0<\/p>\n If the meeting minutes reflect a shift to a more hawkish stance amongst policymakers, Gold is expected to continue retreating.\u00a0<\/p>\n The recent Reserve Bank of Australia (RBA) meeting Minutes<\/a> revealed that officials at the RBA<\/a> had discussed the possibility of raising rates \u2013 a notable shift in stance from previous meetings.\u00a0<\/p>\n Gold price (XAU\/USD) edges down towards support from the green trendline, which reflects the short-term uptrend that began at the beginning of May.<\/p>\n The pair formed a Shooting Star Japanese candlestick pattern (shaded rectangle on the chart) on Monday, followed by a bearish close the following day, providing additional confirmation. The pattern is indicative of short-term weakness.\u00a0\u00a0<\/p>\n <\/a> If the pullback continues, Gold will probably fall to initial support at the green trendline at about $2,405. Further weakness could take it down to the dark grey upward-sloping trendline in the $2,360s.\u00a0<\/p>\n However, the precious metal\u2019s short, medium and long-term trends are bullish, and given the old adage that \u201cthe trend is your friend\u201d, the odds favor an eventual recovery after the correction.\u00a0<\/p>\n A break above the new $2,450 all-time high would likely continue the rally to the next target at the psychologically significant $2,500 level.\u00a0<\/p>\n FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve<\/a> and are a clear guide to the future US interest rate policy.<\/p>\nGold price pulls back ahead of Fed Minutes\u00a0\u00a0<\/h2>\n
Technical Analysis: Gold price edges lower towards trendline support<\/h2>\n
XAU\/USD Daily Chart<\/h3>\n
\u00a0<\/p>\nEconomic Indicator<\/h2>\n
FOMC Minutes<\/h3>\n