XAU/USD is trading above $1,835 in the Asia trading session on Wednesday, ahead of US ISM manufacturing data and the FOMC minutes at midnight. Market traders forecast in December that the ISM manufacturing data would further decline to 48.5 from 49. A value below 50 indicates increasingly contracting economic activity. A softer-than-expected outcome could further cool bond yields and boost gold.
The greenback recovered some lost ground on Wednesday, benefiting from uncertainty over the upcoming FOMC minutes. During the December meeting, market traders will observe if the central bank members support further easing interest rate hikes. Market traders are now betting on a 90% probability of an interest rate hike by 25 basis points in February. This would support the gold price, which is trading at a recent high for periods.
XAUUSD – 4-Hour chart
Gold prices continue to trade higher within brewing rising wedge chart formation boundaries. The pattern is bullish, and the gold price may continue higher within the wedge limits. A breakout higher would likely offer an increasingly bullish bias. Conversely, support for the 10-hour moving average line on the 4-hour chart will probably break and go downward.
