VOT Research Desk
In the Tokyo session, the price of gold (XAU/USD) dropped significantly to close to $1,730.00 as the risk impulse showed conflicting reactions before to the release of the Federal Open Market Committee (FOMC) minutes.
Due to the fact that the FOMC minutes will also include hints regarding the interest rate direction, the precious metal is undergoing extreme volatility.
However, it will continue to be important to provide a thorough justification for the fourth straight increase in interest rates of 75 basis points (bps).
The US dollar index (DXY), however, has begun to show signs of improvement after falling to just below the round-level support of 107.00.
Gold Technical Analysis:
On a four-hour time frame, the gold price has experienced selling pressure after touching the 23.6% Fibonacci retracement at $1,746.67 (located from the low of November 3 at $1,616.39 to the high of November 15 at $1,786.55).
The 20-period Exponential Moving Average (EMA), which is located at about $1,747.00, has also served as a significant barrier for the currency.
The Relative Strength Index (RSI) (14) is currently circling around the 20.00–40.00 negative zone. A bearish momentum will start if there is a slippage inside the bearish range.
