"Bullish Factor DXY"
The minutes report of the FOMC meeting that was published early this morning is seen to be able to give a "bullish factor" effect to the US Dollar index (DXY).
The main gist of the details of the minutes of the meeting was that the Federal Reserve (FED) is ready to raise interest rates again. In addition, positive "housing" and "industrial production" data reports yesterday also support the strength of the US Dollar.
XAU/USD Under Pressure
In relation to that, the price of gold is expected to be further depressed by the rise of "DXY". US Treasury Yield, seen to benefit as a result of FOMC meeting minutes published.
In addition, China's economic sentiment which is seen as risky also affects the fall in the value of gold.
Tonight, the market will be served with the release of "jobless claims" and "Fed manufacturing survey" data that will also influence the movement of the US Dollar.
These two data will be decisive for the current strength of the United States (US) economy.
Technical Analysis
Today's gold price is seen trying to recover after falling to $1,893 yesterday.
However, this recovery is seen as a retracement because sentiment and economic factors are still not on the side of the "bullish factor".
As such, the level of $1,906 is seen as resistance for the price of gold to continue rising to the level of $1,970.
Nevertheless, the data that will be published tonight will be decisive for the certainty of strengthening the dollar index (DXY).
