The preceding five trading days saw gold close in the green.
$1,815 is the next level of resistance before $1,830.
Bond yields in the United States continue to decrease ahead of the FOMC Minutes.
Despite a significant drop in the second part of the day, gold managed to end the fifth trading day in a row in the green on Tuesday. Despite the fact that the dollar continues to outperform its peers on Wednesday, the XAU/USD pair remains positive above $1,800.
The dramatic decrease in US Treasury bond yields permits gold to continue to find demand in the absence of high-tier macroeconomic data releases. The benchmark 10-year US Treasury bond yield, which fell more than 6% on Tuesday, is now at 1.313 percent, the lowest level since mid-February, and is down about 3% on a daily basis.
Earlier in the day, the latest Job Vacancies and Labor Turnover Summary (JOLTS) from the US Bureau of Labor Statistics revealed that the number of job openings on the final business day of May was unchanged at 9.2 million.
The US Dollar Index, which measures the performance of the US dollar against a basket of six major currencies, surged to its highest level in three months on Wednesday, hitting 92.84, potentially restricting XAU/upside. USD’s
The FOMC will issue the minutes from its June meeting later in the day. According to FXStreet senior analyst Joseph Trevisani, “the minutes are unlikely to offer specifics of economic conditions or timing of the imminent policy shift.” “The Fed’s annual policy symposium at Jackson Hole, Wyoming, may provide a more conducive environment for Fed officials to admit and examine the circumstances for a bond taper, but the official agenda could be contained in the minutes of the June FOMC meeting. “If gold closes the day above $1,800 (psychological milestone, Fibonacci 50 percent retracement of April-June uptrend), it could move towards $1,815 (July 6 high) before $1,829 (April-June uptrend retracement) (200-day SMA).
Meanwhile, on the daily chart, the Relative Strength Index (RSI) indicator is hovering above 50, indicating that sellers are hesitant to maintain control.
If XAU/USD fails to maintain above $1,800, further losses could be seen towards $1,790 (100-day SMA). The next support level could be $1,770 (Fibonacci 61.8 percent retracement).
According to Credit Suisse analysts, gold might reach $1,829. “Gold has reclaimed $1765/55 as price support, and we expect strength to return to the 200-day average at $1829,” analysts added. “A close above here is required to allow a return to more significant resistance above $1940/66.”
Gold price forecast: XAU/USD could rise well towards the 200-day moving average of $1829, according to Credit Suisse./n
