Gold price is looking to extend the previous sell-off on Wednesday. As FXStreet’s Dhwani Mehta notes, $1,903 appears at risk for XAU/USD.

Fed minutes take center stage

“Fed’s policy expectations take center stage heading into the release of the March meeting’s minutes. All eyes will remain on the Fed officials’ debate about the prospects of aggressive tightening in the coming months while any hints on the balance sheet reduction will be also closely eyed.”

“Gold’s daily chart shows that the price is challenging the lower boundary of the recent trading range near the $1,915 region. A sustained break below the latter will call for a test of the ascending 50-Daily Moving Average (DMA) at $1,903. The next critical support is seen at the March 29 low of $1,890.”

“On the upside, the 21-DMA at $1,941 will be the first test for gold bulls on the road to recovery, above which the previous day’s high of $1,945 will be challenged. Acceptance above the latter will expose the previous year’s high at $1,960, which will emerge as a tough nut to crack for gold buyers.”