TODAY XAUUSD UPDATE : Gold Price Forecast XAUUSD finds buyers once again near $1,915, Fed minutes in focus
- XAU/USD is rebounding from near $1,915 ahead of the FOMC minutes release.
- Gold prices are forming a diamond pattern that signals a bullish reversal after a prolonged consolidation.
- The DXY is approaching 100.00 amid a souring market mood.
TODAY XAUUSD UPDATE : XAUUSD Gold price is treading modestly flat, reversing a dip to six-day lows of $1,915. The bright metal finds support from a broad retreat in the US dollar, which is seemingly a profit-taking decline ahead of the critical Fed March meeting minutes. Additionally, concerns over the new Russian sanctions and China’s covid surge are weighing heavily on the market sentiment, in turn, reviving the safe-haven demand for gold price. Although the further upside could remain elusive for gold price, in the wake of the ongoing rally in Treasury yields. Also, the FOMC minutes could justify the recent scale-up in the hawkish rhetoric by the Fed officials, delivering a fresh blow to the non-interest-bearing gold.
Gold (XAU/USD) is displaying a subdued performance on Wednesday after witnessing a steep fall from around $1,945 in the New York session on Tuesday. The precious metal is oscillating in a narrow range of $1,916.00-1,925.28 as investors are waiting for the release of the Federal Open Market Committee (FOMC) minutes, which are due on Wednesday.
TODAY XAUUSD UPDATE : The FOMC minutes will unfold the mathematics behind the stance of the Federal Reserve (Fed) Chair Jerome Powell and his colleagues, which was taken for the monetary policy announced in March. This will also provide the status of the US economy. It is worth noting that the Fed increased the interest rate by 25 basis points (bps) in its last monetary policy meet.
On Tuesday, a sheer intraday bearish move in the precious metal was the reflection of the hawkish stance dictated by the Fed policymakers. Fed Governor Lael Brainard cited that the Fed is ready for aggressive action if the indicators of inflation and inflation expectations get worsen. Also, the balance sheet reduction program will pick up soon, which will de-escalate the helicopter money from the economy.
Meanwhile, the US dollar index (DXY) is aiming to kiss the psychological figure of 100.00 amid souring market sentiments on hawkish stances from the Fed officials. Also, the 10-year US Treasury yields have printed a fresh three-year high at 2.62%.
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