Gold Price Forecast: XAU/USD aims to shift auction profile above $1,750 as US Dollar turns volatile
|- Gold price is looking for an establishment above $1,750.00 amid the volatile US Dollar.
- Wednesday’s New York session will also release crucial economic catalysts apart from Fed Powell’s speech.
- The United States labor market is facing the consequences of the Fed’s tight monetary policy.
Gold price (XAU/USD) is aiming to shift its business above $1,750.00 after a meaningful recovery near $1,748.00 in the Tokyo session. The precious metal has sensed buying interest as the US Dollar index (DXY) has turned volatile ahead of the speech from Federal Reserve (Fed) chair Jerome Powell. This time, the speech from Fed Chair carries a significant impact as investors will get cues about a deceleration in the interest rate hike pace.
The USD Index has picked some bids around 106.60 after a downside move and is expected to remain on tenterhooks as Wednesday’s New York session will release crucial economic catalysts apart from Fed Powell’s speech. S&P500 futures have recovered some losses recorded in early Asia. The 10-year US Treasury yields are still rock solid above 3.74%.
The major catalyst that will have a significant impact on Gold price is the US Automatic Data Processing (ADP) Employment data. According to the preliminary estimates, the US economy has added 200k jobs in November vs. 239k added in October. The labor data is facing the consequences of rising interest rates, which has forced firms to halt the recruitment process due to rising expectations of a slowdown ahead.
Gold technical analysis
Gold price is displaying a sideways performance in a range of $1,740-1,760 on an hourly scale ahead of the release of key economic catalysts and Fed Powell’s speech. The 20-period Exponential Moving Average (EMA) at $1,751.00 is overlapping with the asset, which indicates a consolidation ahead.
Meanwhile, the Relative Strength Index (RSI) (14) is continuously oscillating in a 40.00-60.00 range, which states that investors have been sidelined ahead of key events.
Gold hourly chart
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