- Gold price has turned topsy-turvy despite negative market sentiment looms.
- Fed policymaker is expecting two more jumbo rate hikes in June and July.
- A 40.00-60.00 range of the RSI (14) is indicating rangebound moves going forward.
Gold price (XAU/USD) is oscillating in a tight range of $1,815.64-1,822.05 in the early Asian session despite the market mood jitters on soaring inflation worldwide. The precious metal has not been affected by intensified negative impulse in the FX domain. Risk-sensitive currencies have taken a bullet and global equities have witnessed an intense sell-off on Wednesday as the risk-off impulse heightened.
The gold prices are untouched amid carnage in the risk-perceived assets while the US dollar index (DXY) has rebounded sharply after hitting a low of 103.20 on Wednesday. Earlier, the DXY eased 1.5% from its 19-year high at 105.00 recorded last week.
Meanwhile, Philadelphia Federal Reserve (Fed) Bank President Patrick Harker has dictated that the Fed is expected to feature two 50 basis points (bps) interest rate hikes in June and July’s monetary policy meetings. Later, it will stick to a traditional quarter-to-a-percent rate hike to contain the price pressures.
The gold prices are expected to react to risk sentiment and the movement of the DXY amid the unavailability of any major economic event in the US that could result in a decisive move for the bright metal.
Gold technical analysis
On an hourly scale, gold prices have rebounded sharply after successfully testing their previous lows at $1,807.72. The precious metal has formed a Double Bottom chart pattern that signals a bullish reversal on lower selling volume while testing the previous lows. The 20- and 50-period Exponential Moving Averages (EMAs) at $1,817.37 and $1,816.43 respectively have turned flat, which signals a directionless move. Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range that signals the further auction in a tight range.
Gold hourly chart
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