The price of gold (XAUUSD) has fallen below $1,890.00 as the US dollar index (DXY) has risen in response to increasing expectations of a moderate rate hike by the Federal Reserve (Fed). Because of the uncertainty surrounding the Fed’s announcement of its interest rate decision, investors are flocking to the DXY. On Wednesday, the Federal Reserve will almost certainly raise interest rates by 50 basis points (bps) at its monetary policy meeting.

The balance sheet reduction and additional interest rate guidance are the catalysts requiring significant market participants’ attention. The Fed’s guidance will provide a road map for moving towards neutral rates. The helicopter money era gives way to a tight liquidity environment, resulting in long-term changes in various assets.

Meanwhile, the US dollar index (DXY) is attempting to hold above 103.40 after a strong rebound in today’s session, as investors see the US economy outperforming on the PMI front. The Institute for Supply Management (ISM) is expected to publish the US PMI at 58, up from 57.1 in the previous print.

Gold Daily Technical Outlook

GOLD price bounced bearishly after approaching the awaited positive target of 1925.35, to resume the main bearish track, waiting for a break of 1890.00 to confirm the extension of the bearish wave towards 1850.00 as the next negative target.

As a result, we anticipate negative trades in the coming sessions, supported by the negative signals provided by stochastic and the EMA50, noting that it is critical to remain below 1925.35 in order to achieve the suggested targets.

Today’s trading range is expected to be between 1870.00 support and 1910.00 resistance.

Today’s predicted trend: Bearish