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Gold price is holding above $1,860.00 ahead of FOMC minutes. The positive market sentiment has diminished the appeal of safe-haven assets. The US monthly Durable Goods Orders are seen lower at 0.6%.
Facts that hold significant importance in the FOMC minutes are the number of voters advocating the 50 basis points (bps) interest rate hike and economic indicators that may describe the US economic condition in a much more explanatory manner. Apart from the FOMC minutes, the US Durable Goods data hold significant importance. The US Census Bureau is expected to report the monthly Durable Goods Orders at 0.6% against the prior print of 1.1%.
Gold price is within a nominal range of $1,860.42-1,869.75 in the Asian session as investors are awaiting the release of the Federal Open Market Committee (FOMC) minutes in the New-York session.
The precious metal has displayed a firmer rally from its recent low of $1,786.78, recorded on May 16. A five-day winning streak by the gold prices is advocating the continuation of a bullish momentum which could continue if the asset oversteps Tuesday’s high at $1,869.75.
A significant rise in gold prices is backed by vulnerable performance displayed by the US dollar index. The DXY has tumbled sharply below 102.00 after printing a 19-year high of 105.00 on May 13. Considering the positive market mood and DXY’s price action, further weakness in the asset cannot be ruled out. In spite of that, investors’ focus will remain on the release of the FOMC minutes.
Earlier on Tuesday, gold price has been moving higher as the US dollar gave way to the bears again, sliding to a one-month low following hawkish rhetoric from the European Central Bank President Christine Lagarde. The governor said the eurozone interest rates will likely be in positive territory by the end of the third quarter. Consequently, the markets moved out of the greenback and spread the demand across its rivals.
Technically; on an hourly scale, XAU/USD is auctioning in a Rising Channel that advocates gold bulls. The upper boundary of the Rising Channel is placed from May 17 high at $1,835.97 while the lower boundary is plotted from May 16 low at $1,786.78. A golden cross, represented by the 50- and 200-period Exponential Moving Averages (EMAs) has set a bullish bias for the gold prices. The Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which adds to the upside filters.
