Gold Price Forecast: XAU/USD oscillates around $1,810 on volatile DXY, focus is on Fed minutes


  • Gold price is hovering around $1,810.00 as investors await Fed minutes.
  • Investors will be delighted on having a detailed viewpoint of Fed policymakers towards the economy.
  • The expectations of the downbeat US NFP may keep the DXY on the edge.

Gold price (XAU/USD) is testing the upside break of the consolidation formed in a narrow range of $1,806.60-1,809.89 in the early Tokyo session. On a broader note, the precious metal has turned sideways after a firmer rebound from Friday’s low at $1,784.55.

The gold prices are likely to remain on the tenterhooks ahead of the release of the Federal Open Market Committee (FOMC) minutes on Wednesday. The detailed viewpoint from Federal Reserve (Fed) policymakers on the economic indicators of the US economy especially on the inflation rate and growth projections will support the market participants to adjust their positions on associated assets. Also, investors will be able to scrutiny the further direction of the yellow metal and US dollar index (DXY) in a more informed manner.

Meanwhile, the DXY is holding itself above the psychological resistance of 105.00 comfortably. The DXY is expected to remain sideways till the European session as higher volatility at the open leads to a contraction in the same. This week, apart from the Fed minutes, the US Nonfarm Payrolls (NFP) will be of significant importance. As per the market consensus, the US economy added 270k jobs in June, lower than the prior release of 390k.

Gold technical analysis

The gold prices are forming a Bullish Pennant chart pattern on an hourly scale that displays a consolidation phase, which is followed by a sheer upside move.  The consolidation phase indicates an initiative buying structure in which those investors initiate longs, which prefer to enter after an establishment of the trend. The precious metal is auctioning above the 50-period Exponential Moving Average (EMA) at $1,808.23, which indicates a bullish bias.

However, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals the unavailability of any potential trigger as it will continue the consolidation process.

Gold hourly chart

XAU/USD

Overview
Today last price 1809.73
Today Daily Change 2.53
Today Daily Change % 0.14
Today daily open 1807.2
 
Trends
Daily SMA20 1831.28
Daily SMA50 1845.67
Daily SMA100 1891.02
Daily SMA200 1845.74
 
Levels
Previous Daily High 1814.37
Previous Daily Low 1804.05
Previous Weekly High 1841.05
Previous Weekly Low 1784.55
Previous Monthly High 1879.26
Previous Monthly Low 1802.79
Daily Fibonacci 38.2% 1807.99
Daily Fibonacci 61.8% 1810.43
Daily Pivot Point S1 1802.71
Daily Pivot Point S2 1798.22
Daily Pivot Point S3 1792.39
Daily Pivot Point R1 1813.03
Daily Pivot Point R2 1818.86
Daily Pivot Point R3 1823.35

 

 

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