Gold Price Forecast: XAU/USD struggles to sustain above $1,810, spotlight is on Fed minutes

Gold price (XAU/USD) has overstepped the crucial resistance of $1,810.00 and is aiming to sustain above the same amid a weaker US dollar index (DXY). As investors have shifted to the sidelines ahead of the release of the June meeting minutes, the gold prices and the DXY are expected to display wild moves till then.

The DXY has displayed a repulsive action after slipping below the psychological support of 105.00 in the early Tokyo session. A modest rebound is expected to turn into a downside move sooner as odds of a bumper rate hike by the Federal Reserve (Fed) have trimmed.

Considering the soaring inflation in the US economy, investors were hoping for a consecutive 75 basis point (bps) rate hike by the Fed. Now, the downbeat US Institute of Supply Management (ISM) has trimmed the growth forecasts and the Fed might resort to a 50 bps rate hike or even less.

Apart from the Fed minutes, the US Nonfarm Payrolls (NFP) will hog the limelight. A preliminary estimate for the US NFP is 250k, significantly lower than the prior print of 390k.

Gold technical analysis

The gold prices have taken support from the horizontal support placed on June 14 at $1,805.11. Going forward, the downward sloping trendline placed from June 12 high at $1,879.26 will act as a major barrier for the precious metal. The bright metal is firmly stable above the 20-period Exponential Moving Average (EMA) at $1,806.18. Meanwhile, the Relative Strength Index (RSI) (14) is attempting to violate 60.00, which will strengthen the gold bulls further.

Gold hourly chart