In the European session, the gold price (XAUUSD) is showing symptoms of volatility below 1,930.00. As the US Dollar Index (DXY) has been under pressure due to the risk-aversion trend. The precious metal is expected to provide gains.
In London, S&P500 futures have gained ground as buyers shrug off the uncertainties the forthcoming earnings season. The USD Index has risen from the day’s low of 102.49, reflecting strong market sentiment. Meanwhile, rising US yields have limited the gains in price of gold. The 10-year US Treasury rate has risen to around 3.74%.
Investors have been kept on their toes by the Fed’s erratic replies.
Investors have been kept on their toes by policy makers at the Federal Reserve (Fed). Raphael Bostic, President of the Atlanta Fed Bank. Favored of a policy since further limitations may harm the economy’s strength. On the contrary, San Francisco Fed Bank President Mary Daly stated. That two more rate rises this year are a “very reasonable” estimate, echoing Fed Chair Jerome Powell’s comments.
Furthermore United States Durable Goods Orders data will be scrutinized for future actions. According to the survey, the economy will decrease by 1.0% instead of expanding by 1.1%. Durable Goods Orders excluding defense are expected to remain flat versus a 0.7% decrease.
Gold Technical analysis
On an hourly basis, the gold price is oscillating in a Symmetrical Triangle chart pattern, indicating a reduction in volatility followed by an explosion in volatility. The horizontal support line is drawn from the previous week’s low of $1,910.18.
Moreover a 50Moving Average (EMA) at $1,926.00 shows a non directional behavior. The Relative Strength Index (RSI) (14) is bouncing between 40.00 and 60.00, indicating that investors are looking for a possible trigger.
