- Gold price holds above $1,860.00 ahead of FOMC minutes.
- Positive market sentiment has diminished the appeal of safe havens.
- Monthly durable goods orders in the United States are seen down 0.6%.
The price of gold (XAU/USD) juggles in a nominal range of $1,860.42-$1,869.75 in the Asian session as investors await the release of Federal Open Market Committee (FOMC) minutes during the New York session. The precious metal has shown a firmer rally since its recent low of $1,786.78, recorded on May 16. A five-day winning streak in gold prices points to continued bullish momentum that could continue if the asset breaches Tuesday’s high at $1,869.75.
A significant rise in gold prices is supported by the vulnerable performance shown by the US Dollar Index (DXY). The DXY fell below 102.00 after hitting a 19-year high of 105.00 on May 13. Given the positive market sentiment and the price action of the DXY, further weakness in the asset cannot be ruled out. Despite this, investors’ attention will remain on the release of the FOMC minutes.
The facts that are of significant importance in the FOMC minutes are the number of voters behind the case for raising interest rates by 50 basis points (bps) and the economic indicators that can describe the US economic situation. much more explanatory. In addition to the FOMC minutes, US durable goods data is of significant importance. The US Census Bureau is expected to report monthly durable goods orders at 0.6% versus a previous print of 1.1%.
Gold technical analysis
On an hourly timescale, XAU/USD is auctioned in an ascending channel that advocates gold bulls. The upper boundary of the Rising Channel is set from May 17 at $1,835.97 while the lower boundary is drawn from May 16 at $1,786.78. A golden cross, represented by the 50 and 200 period exponential moving averages (EMAs), has established a bullish bias for gold prices. The Relative Strength Index (RSI) (14) has moved into a bullish range from 60.00 to 80.00, adding to the upside filters.