Following the recent rise, the gold price is taking a respite as attention turns to the Fed minutes. XAU/USD, according to FXStreet’s Dhwani Mehta, is poised to rise higher above the $1795-$1797 level.
“As investors reassess the probabilities for the Fed’s aggressive hand ahead of this week’s FOMC minutes, gold price is suffering below the 100-DMA level at $1790 on Monday, lagging behind the broad-based US dollar rally.”
“As traders prepare for the US ISM Services PMI for fresh near-term trading chances, the dollar’s characteristics and broader market sentiment will influence gold price behavior in the day ahead.”
“The price of gold is flat-lining below a horizontal trendline resistance level of $1795. A downward sloping 100-Simple Moving Average (SMA) at $1798 shows just above that level. In order to maintain its recent optimistic momentum and target $1800, gold bulls would require a decisive break over the stated resistance zone.”
“Absolute acceptance above the $1800 round figure will reveal the next resistance level at $1812, the high of June 17.”
“The junction of the 21 and 50-SMAs, now around $1776, provides immediate support. The static support at $1770 will then be targeted by sellers. Bears might push prices much lower, challenging the two-month lows of $1751 set last week.”/n
