- Gold price has turned sideways following the footprints of the DXY.
- The upbeat US Durable Goods Orders have bolstered the odds of one more 75 bps rate hike by the Fed.
- A symmetrical triangle formation by the gold prices is hinting for a continuation of a consolidation phase.
Gold price (XAU/USD) is displaying back and forth moves in a narrow range of $1,821.76-1,825.55 in the Tokyo session. The precious metal is trading lackluster right from the first tick on Tuesday. Earlier, the gold prices witnessed a steep fall after failing to surpass the critical hurdle of $1,840.00. Considering the ongoing inventory distribution, a downside move below Monday’s low at $1,820.85 will drag the bright metal significantly.
Also, the US dollar index (DXY) is displaying a lackluster performance in the Asian session. The DXY is struggling to contain the round-level resistance of 104.00 after a firmer rebound from Monday’s low at 103.69.
The upbeat US Durable Goods Orders released on Monday have raised the odds of a consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed). Investors were worried over the fact that growth prospects might not remain supportive of more policy tightening. However, the release of the above-mentioned economic data at 0.7% vs. 0.1% forecasted has strengthened the Fed to elevate interest rates without much hesitation.
Gold technical analysis
On an hourly scale, the gold prices are auctioning in a Symmetrical Triangle that signals a volatility contraction followed by a breakout in the same. The upward sloping trendline is placed from June 14 low at $1,805.11 while the downward sloping trendline is plotted from June 16 high at $1,857.88. The Relative Strength Index (RSI) (14) is attempting to find a cushion around 40.00.
Gold hourly chart
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