Gold remains under pressure after FOMC minutes

The precious metal is having a difficult time correcting daily losses following the minutes from the March (14th &15th) Federal Reserve’s monetary policy meeting. After leaping up to $1249 right after the release, the yellow metal quickly reversed course and is down 0.85% at $1245 at the moment.

The minutes showed that most participants agree that allowing balance sheet to shrink later this year via a change to reinvestment policy would be appropriate. Furthermore, Fed meeting participants, in general, felt that the labor market continues to strengthen and the economic outlook hasn't changed much since January.

• FOMC minutes: Fed participants 'generally preferred' to change reinvestment of both treasury and mortgage-backed securities

The US Dollar Index refreshed its highest level since March 15 at 100.90 before easing back to 100.60 area. The minutes didn't offer anything surprising as the FOMC members have already been suggesting the idea of shrinking the balance sheet in their latest statements. 

The major equity indices in the U.S. continue to have a strong day amid strong private jobs report, putting further pressure on the safer Gold. 

Technical outlook

The metal is facing the first support at $1244 (200-DMA) before $1241 (20-DMA) and $1235 (50-DMA). On the upside, a break above $1257 (daily high) could aim for $1261.15 (Apr. 4 high) and $1263.75 (Feb. 27 high).