XAU/USD picks bids post-refreshing three-week low near $1,620 – Crypto News – Crypto News
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XAU/USD downside is slowing as price corrects from fresh lows XAU/USD downside is slowing as price corrects from fresh lows

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XAU/USD picks bids post-refreshing three-week low near $1,620 – Crypto News

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  • Gold price has displayed a rebound move at $1,622.50, the downside seems favored amid soaring yields.
  • Risk sentiment turned extremely sour after Fed’s Beige Book warned risk of elevating inflation.
  • US Labor demand has been moderated in anticipation of an economic slowdown.

Gold price (XAU/USD) has displayed a rebound move after refreshing a three-week low at $1,622.50. The precious metal has sensed buying interest as momentum oscillators have turned oversold at intraday timeframe. However, further downside is still favored amid negative market sentiment.

The US dollar index (DXY) has refreshed its day’s high at 113.06 and is aiming to establish above the 113.00 hurdle. Risk sentiment turned extremely sour on Wednesday after the minutes from Federal Reserve (Fed)’s Beige Book cited various risks.

According to the Fed’s Beige Book, price pressures are still elevating amid rising inputs prices used by firms for production, however, the fuel and freight costs have declined amid weaker gasoline prices. Labor demand has turned moderate as firms have preferred the postponement of recruitment services in anticipation of an economic slowdown.

Meanwhile, the 10-year US Treasury yields have climbed to near 4.15% amid soaring Fed bets. As per the CME FedWatch tool, chances for a fourth consecutive 75 basis point (bps) rate hike carry more than 95%.

gold technical analysis

On an hourly scale, the gold prices are declining towards the two-year placed at $1,614.85, recorded on 28 September 2022. The 20-period Exponential Moving Average (EMA) at $1,631.90 is trending south, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals that the downside momentum has already been triggered.

gold hourly chart

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