- Gold price is likely to print a fresh two-year low as DXY is preparing for a fresh rally.
- Ultra-hawkish guidance by the Fed has forced investors to dump gold prices.
- S&P Global PMI is expected to display a mixed performance ahead.
Gold price (XAU/USD) is resuming its downside journey after a less-confident pullback to nearly $1,664.00 in the Asian session. The precious metal is expected to surrender the critical support of $1,654.00 and the investing community will witness a fresh two-year low. The gold prices have weakened dramatically as the Federal Reserve (Fed) chair Jerome Powell has delivered higher-than-expected hawkish guidance on interest rates to wipe off the add-on inflation beyond the desired rate of 2%.
Meanwhile, the US dollar index (DXY) has printed a fresh two-decade high at 111.78. The DXY is expected to continue its dream run as more rate hikes are on the way till the Fed experiences a series of slow down in price pressures for months. The roadmap for bringing price stability is leaked and the interest rates are seen making top around 4.60%. The latest reading of the interest rate target is extremely higher, which will result in a decline in growth projections and job creation.
Going forward, investors will focus on the S&P Global PMI data, which will release on Friday. The Manufacturing PMI is seen lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.
Gold technical analysis
Gold price is oscillating near the lower edge of the consolidation formed in a wider range of $1,654.00-1,690.50 on an hourly scale. The 50-period Exponential Moving Average (EMA) is mostly overlapping with the asset price, which signals a consolidation ahead.
Also, the Relative Strength Index (RSI) (14) has shifted back into the 40.00-60.00, which seeks further trigger for a decisive move.
Gold hourly chart
|Today last price||1662.18|
|Today Daily Change||-11.76|
|Today Daily Change %||-0.70|
|Today daily open||1673.94|
|Previous Daily High||1688.11|
|Previous Daily Low||1653.97|
|Previous Weekly High||1735.17|
|Previous Weekly Low||1654.17|
|Previous Monthly High||1807.93|
|Previous Monthly Low||1709.68|
|Daily Fibonacci 38.2%||1675.07|
|Daily Fibonacci 61.8%||1667.01|
|Daily Pivot Point S1||1655.9|
|Daily Pivot Point S2||1637.87|
|Daily Pivot Point S3||1621.76|
|Daily Pivot Point R1||1690.04|
|Daily Pivot Point R2||1706.15|
|Daily Pivot Point R3||1724.18|
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