Gold settles around $1,670 ahead of FOMC minutes

Gold price holds around 1670$ even after US PPI data. The precious metal stays firm despite the US dollar’s strength.

Market participants turn attention to FOMC minutes ahead of Thursday US CPI numbers. Gold continues to trade around $1,670 as it has been the case since the beginning of the European session. It is moving sideways after US PPI numbers and ahead of the FOMC minutes.

Earlier XAU/USD tested the critical support around $1,660. It held above and rose to $1,675 hitting a daily high before stabilizing around $1,670. It is modestly higher for the day, rising after a five-day losing streak.

Following the release of the US Producer Price Index gold approached daily lows but it quickly bounced back to the upside. The PPI rose 0.4% in September, above the 0.2% of market consensus. The annual rate fell from 8.7% to 8.5%. The greenback gained momentum across the board after the numbers, but just for a few minutes. It continues to move sideways, with mixed results.