Gold hits fresh session highs near $1210

FXStreet (Mumbai) - Gold prices on Comex snapped its side trend and crawled higher to fresh session highs as traders flocked to the safety haven ahead of Fed minutes which is widely expected to read dovish boosting the gold bulls.

Gold rises from $ 1207

Currently, gold trades 0.15% higher at 1208.50, quickly retracing from session highs reached at 1210.20 in last hours. Gold edged higher as markets gave up the US dollar ahead of the Fed minutes from its most recent meeting, due to be published later in the day.

Markets believe the document will read more dovish, with no conclusive hints provided on the timing of the rate-hike, which is likely to drag US dollar lower across the board. Thus, making gold more attractive to the holders’ of the metal in foreign currencies.

Meanwhile, the dollar index, which measures the currency's strength against its major peers, retreated from 95.94 highs and now trades at 95.60, recording a 0.24% gain on the day.

Later in the week, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.

Gold Technical Levels

The metal has an immediate resistance at 1215 and 1220 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.