Gold Price Forecast: XAU/USD struggles around $1,770, investors await Fed minutes and US ISM data

• Gold prices are facing barricades around $1,770.00 ahead of the FOMC minutes.
• The DXY is displaying a time correction on expectations of lower US ISM Services PMI data.
• Declining 20-and 50-period EMAs are signaling more downside ahead.

Gold price (XAU/USD) has shifted into a consolidative phase as the market participants are on the sidelines ahead of the release of the Federal Open Market Committee (FOMC) minutes. The precious metal is displaying topsy-turvy moves in a $1,768.38-1,772.90 range in the Tokyo session.

On Tuesday, the gold prices witnessed a sheer downside fall after the escalating recession fears underpinned the greenback. The bright metal plunged around 2% after surrendering the psychological support of $1,800.00.

Meanwhile, the US dollar index (DXY) is displaying a time correction after a fresh impulsive wave. The DXY refreshed its 19-year high at 106.78 ahead of the FOMC minutes. Investors are aware of the fact that the Federal Reserve (Fed) announced a 75 basis point (bps) interest rate hike in June. The announcement of a 75 bps rate hike was the highest in the past 28 years. Therefore, reading the ideology behind the bumper rate hike announcement by Fed chair Jerome Powell is principal.

In addition to the Fed minutes, investors will also focus on the US ISM Services PMI. A preliminary estimate for the economic data is 54.5, lower than the prior release of 55.9.

Gold technical analysis

On an hourly scale, the gold prices will face the critical hurdle at $1,784.55, which is July 1 low. The 50- and 200-period Exponential Moving Averages (EMAs) at $1,790.00 and $1,810.00 respectively are vertically down, which signals the strength of the gold bears. Also, the Relative Strength Index (RSI) 14 has shifted into the bearish range of 20.00-40.00, which signals more downside ahead.

Gold hourly chart