FOMC minutes released on Wednesday gave Dollar the much required support as minutes were interpreted to be hawkish. Gold that had another go at $1351 failed again to close down at $1328 after finding support at $1319, where the rising trend line sits.
Gold had another go at the resistance at $1351/oz., briefly breaking it but failed to gain any further closing lower at $1349/oz. US data from last week was supportive of gold as stagflation worries returned with US inflation was seen higher, while retail sales were lower.
US equity sell off accelerated last week with it recording a sharp 10% decline spread across 2 weeks. The selloff was accelerated by worries about tightening by central banks worldwide that would bring to an end the availability of easy money.
Last week ended with the dollar moving higher on Friday following the US jobs data indicating that hiring activity and wage growth were bullish in January, paving the way for swifter rate increase by the Fed this year.