Gold Price Forecast: XAU/USD struggles around $1,750 ahead of Fed Powell’s speech and other key triggers

• Gold price is facing immense pressure in holding itself above the crucial hurdle of $1,750.00.
• The US Treasury yields have rebounded firmly amid anxiety ahead of Fed Powell’s speech.
• Apart from a speech from Jerome Powell, investors are awaiting GDP, core PCE, and Employment data.

Gold price (XAU/USD) is facing hurdles in sustaining above the critical hurdle of $1,750.00 in the early Tokyo session. The precious metal is highly likely to deliver a sideways auction as investors are awaiting the speech from Federal Reserve (Fed) chair Jerome Powell. Also, the release of other triggers such as United States Automatic Data Processing (ADP) Employment, Gross Domestic Product (GDP), core Personal Consumption Expenditure (PCE), and Fed’s Beige Book.

Meanwhile, the US Dollar Index (DXY) has shifted its business above the crucial barricade of 106.75 as the risk-off impulse remained active for some specific risky assets. The market has become currency specific as a cautious market mood is not impacting the entire gamut of risk-perceived assets. S&P500 remained subdued on Tuesday as investors await multiple triggers for making an informed decision.

While the 10-year US Treasury yields roared back dramatically above 3.75% as Fed policymakers are expecting no slowdown in the pace of interest rate hikes as one good monthly inflation report is not sufficient to infuse confidence. Going forward, the US ADP data will be very crucial. As per the estimates, the US economy has created additional 200k jobs in November vs. the prior release of 239k.

Gold technical analysis

On an hourly scale, Gold price is displaying a sideways performance in a range of $1,740-1,760 ahead of the release of key economic catalysts. The 20-period Exponential Moving Average (EMA) at $1,751.35 is overlapping with the asset, which indicates a consolidation ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which states that investors have been sidelined ahead of key events.

Gold hourly chart