VOT Research Desk
In the Tokyo session, the gold price (XAU/USD) has moved its trading over the key resistance level of $1,750.00.
The precious metal is anticipated to increase its gains as investors sell off the US dollar index (DXY) in the wake of a strong rise in risk appetite.
As investors see no potential for the Federal Reserve to continue its 75-basis point (bps) rate hike regime, the DXY has fallen below the safety net of 106.00. (Fed).
According to the Federal Open Market Committee (FOMC) minutes, which were made public in the late New York session, the majority of Fed policymakers favor a slower rate hike pace in order to lower financial risks and gauge the success of current policy tightening measures.
For the monetary policy meeting in December, Fed chair Jerome Powell will increase interest rates by 50 basis points (bps) due to the persistence of inflation in the US economy.
Gold Technical Analysis
Gold’s price has successfully broken out of the consolidation formed around the 200-period Exponential Moving Average (EMA) at $1,744.00 on an hourly basis. The consolidation stayed within the $1,732-1,750 range.
Additionally, the Relative Strength Index (RSI) (14), which shows the strength of the upward momentum, has moved into the bullish range of 60.00–80.00.
