Due to hawkish remarks from several Federal Reserve (Fed) leaders, the precious metal is battling to maintain gains.
As the Fed is anticipated to maintain higher interest rates for a respectable amount of time, demand for US government bonds is decreasing.
The yield on US 10-year Treasury notes has decreased to around 3.42%. The US Dollar Index (DXY), which oscillates in a constrained range above 101.60, is doing poorly in the meanwhile.
The economic downturn, slowing Producer Price Index (PPI) statistics, and decreased retail demand all point to falling inflation, but the inflation rate is still well above the 2% inflation objective.
Therefore, it cannot be ruled out that the Fed would continue to announce interest rates.
According to the findings of a poll, after raising interest rates by 25 basis points (bps) in the following two monetary policy meetings, chair Jerome Powell will stop the policy tightening program for the remainder of CY2023.
Gold Technical Analysis;
In order to hold above the crucial resistance level of $1,930.00 in the Asian session, the gold price (XAU/USD) is under selling pressure.
Due to the asset’s successful hourly breakout of the symmetrical triangle chart pattern, the price of gold is poised for further gains.
Given that the amount of the ticks after the breakout was bigger than usual, the breakout of the volatility contraction chart pattern appears to be reliable.
The upward filters are supplemented by upward-sloping 20- and 50-period Exponential Moving Averages (EMAs) at $1,923.91 and $1,917.54, respectively.
The upside momentum is active, as seen by the Relative Strength Index (RSI) (14) swinging in a bullish area of 60.00-80.00.
