Gold price takes a breather after the recent rally, as focus shifts to Fed minutes. In the view of FXStreet’s Dhwani Mehta, XAU/USD is set to eye further upside above the $1795-$1797 region.
Investors reassess Fed’s hawkish moves
“Gold price is struggling below the 100-DMA barrier at $1790 this Monday, partly lagged by the broad-based US dollar rebound, as investors reassess the odds for the Fed’s hawkish hand ahead of this week’s FOMC minutes.”
“In the day ahead, the dollar’s dynamics and broader market sentiment will influence gold price action, as traders brace for the US ISM Services PMI for fresh near-term trading opportunities.”
“XAU/USD is flat-lined below a horizontal trendline resistance at $1795. Just above that level, a downward sloping 100-Simple Moving Average (SMA) at $1798 appears. Therefore, gold bulls need a decisive break above the said resistance zone, in order to extend its recent upbeat momentum to challenge $1800.”
“Acceptance above the $1800 round figure will expose the next resistance at $1812, June 17 high.”
“Immediate support is seen at the 21 and 50-SMAs confluence, now at $1776. Sellers will then target the static support at $1770. Further down, bears could challenge the two-month lows of $1751 reached last week.”
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