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Gold is trading at $1299, down 0.3%, after the precious metal hit a one week high on Friday following the non-farm payrolls report. The softer-than-expected jobs report boosted gold, as traders felt the Federal Reserve would keep the stimulus package for a prolonged period of time. Gold has struggled with the $1300 mark and the release of the Fed minutes on Wednesday 7pm (London time) has traders fearing the worst.
Recently, Fed members James Bullard and Dennis Lockhart suggested interest rates in the US could increase in the 2015. If we hear a similar hawkish sentiment on Wednesday, we could see gold head towards the 100-day moving average of $1279.
Tensions are rising in Ukraine, with more pro-Russian demonstrations in the east of the country. If the relationship between Moscow and the west deteriorates, gold could be driven higher because of the flight to quality factor. This could make the 50-DMA of $1322 a possible target.