Sellers' momentum is still strong

FOREXCOM:XAUUSD   Gold Spot / U.S. Dollar
Hello to all members of TradingView and my followers.

The price of gold is experiencing a slight recovery from the range of $1,763 at the lowest level of this year, which was recorded earlier this Wednesday. However, he tried to capitalize on this move. XAUUSD is trading today in the same range as yesterday's closing price, in the range of 1766 to 1767 dollars.

The U.S. dollar pared gains after a recent strong climb to a two-decade high hit on Tuesday, amid a shift in trading positions ahead of FOMC minutes. This, in turn, is seen as a key factor supporting dollar gold , although this rally in gold prices lacks bullish conviction and risks fading quickly.

Federal Reserve Chairman Jerome Powell reiterated last week that the U.S. central bank is focused on controlling inflation , adding that the U.S. economy is well-positioned to handle tighter policy.

This prompted the Federal Reserve to raise rates more aggressively, which should act as a headwind for the dollar. Apart from this, the incentive to take risks kept any significant gains safe for gold .

Investors may also hold off on aggressive bets, preferring to wait for fresh clues about the Fed's policy tightening path. Hence, the FOMC minutes report should incentivize the non-yielding yellow metal. Apart from this report, the US NPF on Friday will affect the short-term dynamics of the dollar price and help determine the next stage of the gold price's directional movement .

Technical Analysis:

By examining the trend situation in the four-hour TF, there is a possibility of making a butterfly-type harmonic pattern . Last day, the price reached the range with the potential to return in the region of $1760-1764 and rested in it, but this cannot be a low-risk sign to complete the pattern and turn the trend because it still shows high kinetic energy-momentum.

With the failure of this zone, there is still a continuation of the decline to the range of 1720-1729 dollars. This area is considered important support.

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