- Gold price has failed to sustain above $1,920.00 amid a hawkish interest rate outlook from the Fed.
- Fed policymakers are in support of more restricting monetary policy as inflation is still stubborn due to robust demand.
- Gold price has faced severe selling pressure while attempting to surpass the 100-period EMA plotted around $1,929.00.
Gold price (XAU/USD) has sensed selling pressure while attempting to sustain above the crucial resistance of $1,920.00 in the European session. The precious metal is struggling to attract bets as Federal Reserve (Fed) policymakers remained hawkish on interest rate outlook, according to Federal Open Market Committee (FOMC) minutes.
Despite deepening worries about the economic outlook due to tight credit conditions, Fed policymakers are in support of more restricting monetary policy as inflation is still stubborn due to robust demand.
S&P500 futures have posted meaningful losses in Europe as investors are cautious ahead of Employment data and quarterly result season. On Thursday, investors will focus on the Automatic Data Processing (ADP) Employment Change report. As per the estimates, the US ADP report will show fresh additions of 228K in June vs. the former addition of 278K.
In addition to the ADP Employment report, US ISM Services PMI will also be on the radar. The economic data is seen higher at 51.0 vs. the former release of 50.3. While New Orders Index is seen declining to 53.3 against the prior release of 56.2.
Meanwhile, the US Dollar Index (DXY) is expected to turn sideways as investors have sidelined ahead of key economic indicators. However, the 10-year US Treasury yields have climbed to 3.97%.
Gold technical analysis
Gold price has faced severe selling pressure while attempting to surpass the 100-period Exponential Moving Average (EMA) plotted around $1,929.00. The precious metal failed to sustain above the downward-sloping trendline plotted from May 03 high at $2,079.76.
The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00. Bearish momentum would trigger if it drops below 40.00.
Gold four-hour chart
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