Gold price is advancing for the first time so far this week. However, it remains to be seen whether the renewed upside in XAU/USD price will sustain, as all eyes turn toward the FOMC July meeting minutes, FXStreet’s Dhwani Mehta reports.

XAU/USD’s battle with 50 DMA extends ahead of Fed minutes

“The minutes will likely confirm the Fed remains on track on its aggressive tightening path to tame inflation, although hints on the size of the future rate increases will hold the key for the continuation of the recent uptrend in the US dollar, which will potentially have a significant impact on the bright metal.”

“Gold price is looking to recover ground once again above the bearish 50-Daily Moving Average (DMA), now at $1,779. A sustained break above the latter is needed to revive a recovery towards the $1,800 threshold. The monthly high of $1,808 will then appear on buyers’ radars.”

“Failure to find acceptance above the 50 DMA barrier will kickstart a fresh downtrend towards the upward-pointing 21 DMA at $1,762. Ahead of that sellers will challenge the $1,770 round figure once again. Should the selling pressure accelerate, a test of the August 3 low of $1,754 will be on the table.”