Bullion has entered a long-due correction after the latest rally from mid-February. Wednesday’s FOMC meeting minutes coincided with the peak around 1340. The Fed appeared less dovish than expected by emphasising on the strength of economic fundamentals. Markets might have realised their over-pessimism about the dollar and its latest rise makes the precious metal less attractive.
On the technical side, after breaking the 1323 support level, we could see further weakness. Gold could drop to as low as to the 1302 daily support. On the upside, 1327 is the immediate resistance.