Article by: ETO Markets

Participants in the market await the FOMC minutes. Crucial US data, including as Durable Goods Orders and Jobless Claims, is coming on Wednesday. A negative figure for these figures might push the XAU/USD pair above $2,000. But as of right now, it doesn't seem ready to support a more forceful rally unless Treasury yields clearly fall lower, suggesting that they have peaked.

With technical indicators like Momentum crossing the midline and the Relative Strength Index heading north while remaining comfortably away from overbought levels, the daily chart of XAU/USD exhibits a tilt towards the upside. Nonetheless, a significant resistance level appears near $…, a region that limited the increase in October. To allow for more gains, there must be a consolidation above that point. 

The 4-hour chart exhibits an upward tilt as well. The 20-SMA is currently at $…, and it is followed by the immediate support at $... It seems that the last line of defence against a more substantial negative correction is an uptrend line at $...