Gold rose about 1 percent on Wednesday, shaking off two days of losses, as the dollar edged lower after the release of the minutes from Federal Reserve's July meeting at which policymakers voted unanimously to keep U.S. interest rates unchanged. The readout of the meeting also showed the Fed increasingly ready to begin reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities. In the minutes, policymakers had a lengthy discussion about a recent streak of soft inflation readings. Inflation has remained below the central bank's 2 percent target for more than five years. Federal Reserve policymakers appeared increasingly wary about recent weak inflation and some called for a halt to further interest rate hikes until it was clear the trend was transitory.
The dollar weakened against a basket of currencies after the release of the minutes. U.S. stocks pared gains while prices of U.S. Treasuries were largely unchanged. Spot gold was up 0.8 percent to $1,281.15 per ounce, after rising as much as 1 percent to a session high of $1,283.90.
On technical front, gold recovered yesterday’s losses and regained the ground of $1,280 after Fed’s minutes. Technical indicators show that upward momentum is losing, suggesting rising pressure on bullion. Resistance can still be found at the key mark of $1,300. In case of failed breakthrough, gold is expected to pull back in coming sessions.
Tracking gold, silver surged 2.8 percent to $17.06 an ounce, holding above its 100- and 200-day moving averages. The MACD index shows lingering upward momentum, suggesting that the white metal will keep testing the support of the aforementioned technical level. In case of failed breakthrough, silver is expected to pull back.

 
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