Gold Rebounds Above $1,750 – Dovish FOMC Minutes in Play - Forex News by FX Leaders

Gold Rebounds Above $1,750 – Dovish FOMC Minutes in Play

Posted Thursday, November 24, 2022 by
Skerdian Meta • 1 min read
In the Tokyo session, the gold price moved above the critical resistance level of $1,750.00. The precious metal is projected to prolong its gains as investors sell the US dollar index (DXY) in response to a strong increase in risk appetite. The DXY has fallen below the 106.00 support level as investors see no reason for the Federal Reserve to continue its 75 basis point (bps) rate rise regime.

Meanwhile, S&P500 futures are gaining ground on a solid Wednesday. Markets in the United States will be closed on Thursday for Thanksgiving, which could reduce volatility. The 10-year US Treasury yield has extended its losses below 3.69% as the Fed prepares to slow its current rate hike pace.

The Federal Open Market Committee (FOMC) minutes released in the late New York session indicated that most Fed policymakers favor a slower rate hike to reduce financial risks and assess the progress made by policy-tightening measures thus far. Given the persistence of inflation in the US economy, Fed Chair Jerome Powell will raise interest rates by 50 basis points at the December monetary policy meeting.

Gold Technical Outlook

Gold closed above the $1,746.40 level yesterday, ending the negative correcting situation and restarting the main bullish trend, paving the way for gains that begin around $1,765 and extend to the previously set high of $1,786.50.

As a result, a bullish bias will be proposed for today, backed by a move above the EMA50, while breaking $1,746.40 will end the positive scenario and force the price to fall again.

Today’s trading range is likely between $1,740 support and $1,775 resistance.
Today’s projected trend: bullish.

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