Gold Price Forecast: XAUUSD points to a brief technical correction before the next uptrend kicks in
Gold Price has finally yielded a daily closing above the critical 21-Daily Moving Average (DMA) hurdle at $1,855. So, what’s next? XAUUSD bulls await Fed’s May meeting minutes release for the next upside leg, FXStreet’s Dhwanie Mehta reports.
Gold bulls are taking a breather heading into Fed minutes
“Wednesday's publication of minutes from the Fed's May meeting could show the reluctance of the Fed policymakers for further rate hikes at the September meeting. Also, the Fed members’ discussion around quantitative tightening will be closely eyed.”
“After the relentless surge, gold bulls could see a minor pullback from two-week highs, with the immediate support of the 21-DMA likely to be tested. A sustained break below the last could expose the next downside target of $1,850, below which the mildly bullish 200-DMA at $1,839 will challenge the bullish traders.”
“If the Fed minutes downplay aggressive rate hike expectations, providing a cautious take amidst hard-landing fears, then the metal could resume its recent uptrend towards the horizontal 100-DMA at $1,886. The next relevant hurdle aligns at the $1,900 threshold.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
