Gold price remains choppy within a familiar range. XAU/USD lacks a clear directional bias, as focus shifts to Fed minutes, FXStreet’s Dhwani Mehta reports.

Fed minutes eyed for a fresh direction

“Attention now turns towards the US ISM and S&P Global Services PMIs, the UN Security Council meeting on Ukraine and the inverted Treasury yields curve for fresh impetus on gold price action. The Fed minutes, however, will be the key event risk, which will provide fresh insights on whether the world’s most powerful central bank will deliver a series of aggressive rate hikes to quell raging inflation.”

“Gold bulls continue to face stiff resistance at the mildly bearish 21-Daily Moving Average (DMA) at $1,948. Meanwhile, they have found comfort at ascending 50-DMA support of $1,901 so far.”

“On the upside, Friday’s high of $1,940 will offer an initial hurdle, above which the 21-DMA could limit the advances. Acceptance above the latter will expose the previous year’s high at $1,960, which will be the level to beat for bulls.”

“If the renewed weakness in XAU/USD extends, then sellers could attack the four-day lows near $1,915. The next safety bet is aligned at 50-DMA. The previous week’s low of $1,890 could offer some reprieve to gold buyers on persistent downside pressure.”