- Gold price is oscillating below $1,820.00, seeking a rally after a pullback.
- The Fed is focusing on bringing price stability to the economy.
- The precious metal is holding above 50% Fibo retracement.
Gold price (XAU/USD) is establishing below $1,820.00 after a modest fall from a high of $1,836.55 on Tuesday. The precious metal has failed to capitalize upon the diminishing safe-haven appeal of the US dollar index (DXY). The DXY has eased more than 1.5%, at the press time, from its recent 19-year high of 105.00 in the last two trading sessions. A balance in a range of 103.23-103.55 has been witnessed in the New York session, which is expected to get imbalanced sooner.
Fed Powell’s focus on bringing price stability
Federal Reserve (Fed) chair Jerome Powell has already announced two more jumbo rate hikes in the next two monetary policy meetings to curb the inflation mess, in an interview with Marketplace National Radio Station. Carry-forwarding his views in Q&A at Wall Street Journal, the focus of Fed’s Powell is to bring price stability to the economy. Fed’s Powell has also dictated that the central bank will keep with its tightening monetary policy until the inflation drops significantly.
This week, the light economic calendar will keep bringing topsy-turvy moves in the precious metal and investors will keep focusing on statements from Fed policymakers.
Gold technical analysis
On an hourly scale, XAU/USD is holding above the 50% Fibonacci retracement (placed from Monday’s low $1,786.94 to Tuesday’s high at $1,836.15) at $1,811.63. The precious metal has tumbled below the 50-period Exponential Moving Average (EMA) at $1,821.02. The Relative Strength Index (RSI) (14) is sensing support at 40.00 levels, which indicates the availability of responsive buying participants.
Gold hourly chart
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