Market news
23.11.2022, 04:40

Gold Price Forecast: XAU/USD tests a three-day low at around $1,730 as US Dollar attempts a recovery

  • Gold price has dropped to near three-day's low around $1,730.00 ahead of FOMC minutes.
  • A 75 bps rate hike by the RBNZ has also weakened gold prices.
  • The precious metal has sensed selling pressure after testing the 23.6% Fibo retracement at $1,746.67.

Gold price (XAU/USD) has declined sharply to near $1,730.00 in the Tokyo session as the risk impulse is displaying mixed responses ahead of the release of the Federal Open Market Committee (FOMC) minutes. The precious metal is witnessing sheer volatility as FOMC minutes will also provide clues about the interest rate guidance. However, the detailed explanation behind hiking interest rates by 75 basis points (bps) for the fourth time consecutively will remain crucial.

Meanwhile, the US dollar index (DXY) has displayed signs of recovery after dropping to near the round-level support of 107.00.

Outside the West, the Reserve Bank of New Zealand (RBNZ) has gone for a bigger rate hike amid its battle against mounting inflation. RBNZ Governor Adrian Orr ditched the 50 bps rate hike regime and went for a rate hike of 75 bps, in line with the expectations.

The commentary from RBNZ Governor indicated that policymakers were also considering a full percent rate hike. Although the Federal Reserve (Fed) is expected to slow down its rate hike pace, other central banks are still bidding for bigger hikes as inflation is still a reason for worry.

Gold technical analysis

On a four-hour scale, the gold price has sensed selling pressure after testing the 23.6% Fibonacci retracement (placed from November 3 low at $1,616.39 to November 15 high at $1,786.55) at $1,746.67. Also, the 20-period Exponential Moving Average (EMA) at around $1,747.00 has acted as a major barricade for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is hovering around the bearish range of 20.00-40.00. A slippage inside the bearish range will trigger a bearish momentum.

Gold four-hour chart

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location