The gold price has recovered after hitting a three-week low of $1,622.50. As momentum indicators have gone oversold in the intraday timeframe, the pre
The gold price has recovered after hitting a three-week low of $1,622.50. As momentum indicators have gone oversold in the intraday timeframe, the precious metal GOLD has felt buying activity. However, given the current state of the market, further decline is still preferred.
The US dollar index (DXY) has reclaimed its day’s high of 113.06 and is attempting to break through the 113.00 barrier. On Wednesday, risk sentiment deteriorated dramatically after the minutes from the Federal Reserve’s Beige Book listed different dangers.
According to the Fed’s Beige Book, pricing pressures remain elevated due to increased input prices used by enterprises to produce goods. However, fuel and freight costs have decreased due to lower gasoline prices. In anticipation of an economic slowdown, employers have decided to postpone recruitment services, causing labor demand to drop.
XAU/USD
Meanwhile, 10-year US Treasury yields have risen to roughly 4.15% as Fed wagers have risen. According to the CME FedWatch program, the chances of a fourth consecutive 75 basis point (bps) rate hike are greater than 95%.
Gold (XAU/USD) Technical Outlook
Gold price reached and surpassed our first anticipated target of $1,630, confirming the continuation of the bearish trend dominance on an intraday and short-term basis. The formation of a bullish engulfing candle is likely to drive an uptrend in gold until the $1,642 level.
However, the downward trendline is likely to keep gold under pressure near the $1,645 area. A bullish breakout above this level could expose gold price towards $1,660.
Today’s projected trend: Bullish
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