The gold price has shown a minor reversal after hitting a low of $1,812.24 in the Asian session. The precious metal has seen downside exhaustion as th
The gold price has shown a minor reversal after hitting a low of $1,812.24 in the Asian session. The precious metal has seen downside exhaustion as the US dollar index (DXY) faces offers following a juggernaut rally. A minor correction was widely anticipated in the DXY as a perpendicular rally followed by a correction, but this does not justify a bearish reversal.
The DXY was under selling pressure at the open, which supported GOLD prices. The former has dropped to near 105.00 after remaining range-bound between 105.14 and 105.29. The DXY has a robust upward bias as the Federal Reserve (Fed) is anticipated to sound exceptionally hawkish in its June monetary policy statement.
XAU/USD
As a result, households in the United States have difficulty dealing with price pressures because higher inflation is depreciating their paychecks, leading to lower purchases and investor confidence. Consequently, market participants have begun to consider a 75 basis point (bps) rate hike announcement as strict quantitative measures will aim to contain soaring inflation.
Gold Technical Outlook
Gold price suffered significant losses to break the 1,838.10 level and settle below it. This has put the price under expected additional negative pressure in the coming sessions, on its way to visit 1,810 accompanied by 1,780.25 areas following negative stations.
The expected decline will remain valid unless the price rallies to breach and hold above 1,850. We can expect a selling bias under $1,835 and vice versa. Good luck!
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