Gold price is on a bearish consolidation pattern ahead of the FOMC meeting minutes. In the previous session, it plunged as a reaction to the lower-than-expected US ISM manufacturing PMI. The released figure of 60.1 missed the analysts’ estimates of 63.5 and the prior month’s 64.0.
Investors are now keen on whether the FOMC meeting minutes will match the central bank’s hawkish tone in its last meeting. The Fed’s hawkish surprise in June boosted the US dollar, which in turn reversed gold price’s two-month gains. After hitting a 5-month high of $1,916.36 earlier in June, the precious metal dropped by close to 9% in the past month.
Gold price technical outlook
On Tuesday, gold price plunged from an intraday high of 1,815.07 to a low of 1,790. It has since consolidated as investors await further cues from the FOMC meeting minutes. At the time of writing, the precious metal was down by 0.06% at 1,796.39. On an hourly chart, it is trading between the 25 and 50-day exponential moving averages.
In the near term, gold price is likely to be range-bound; trading between the resistance-turn-support level of 1,793.25 and the psychological level of 1,800. Depending on the details of the Fed minutes, a move below 1,790 will clear the path to the support levels at 1,784.42 and 1,780. On the flip side, a move past the resistance level at 1,800 will have the bulls eyeing Tuesday’s high of 1,815.07.
Gold price chart
Follow Faith on Twitter.