Gold (XAU/USD) is trading at $2,372.64, down 0.33%. The pivot point is at $2,396.72, with resistance at $2,396.72, $2,416.82, and $2,433.83. Support levels are at $2,372.35, $2,351.86, and $2,332.14.

Hawkish FOMC Minutes Impact Gold

The FOMC minutes released on Wednesday revealed a more hawkish stance, with participants noting a lack of progress towards the 2% inflation target. This bolstered the US dollar and exerted selling pressure on gold.

Traders are now focused on upcoming US economic data, including the preliminary May readings of the Manufacturing and Services PMIs. Weaker data could reignite hopes for Fed rate cuts, supporting gold prices.

Additionally, the Chicago Fed National Activity Index, weekly Initial Jobless Claims, and New Home Sales data will be in focus.

Global Central Bank Actions

The People’s Bank of China (PBoC) has been the largest buyer of gold among global central banks, adding 225 tonnes to its reserves last year, the highest since 1977. This significant purchase underlines ongoing geopolitical and economic uncertainties.

In conclusion, the XAU/USD price forecast remains bearish due to the strong US dollar and the Fed’s hawkish outlook. A sell entry is recommended below $2,375, with a take profit target of $2,353 and a stop loss at $2,400.

Daily Technical Outlook: Gold (XAU/USD) – May 23, 2024

Gold (XAU/USD) is trading at $2,372.64, down 0.33%. The 4-hour chart indicates a bearish trend, with prices breaking below the pivot point of $2,396.72. Immediate resistance levels are at $2,396.72, $2,416.82, and $2,433.83, while support levels are found at $2,372.35, $2,351.86, and $2,332.14.

The RSI is at 35.45, indicating bearish momentum, and the 50 EMA stands at $2,388.31, providing dynamic resistance. The recent downward breakout suggests a selling trend. Therefore, a sell entry is recommended below $2,375, with a take profit target of $2,353 and a stop loss at $2,400.