Gold Price Forecast: XAU/USD finds bids below $1,850, consolidation looks likely ahead of US NFP

• Gold price is oscillating in a broader range of $1,846.02-1,864.07 as investors await US NFP.
• A hawkish commentary from Fed Waller has underpinned the DXY.
• The precious metal is likely to remain lackluster amid the Symmetrical Triangle formation.

Gold price (XAU/USD has witnessed a sheer downside move after failing to sustain above the $1,860.00 in the Asian session. The precious metal tumbled sharply after the US dollar index (DXY) displayed a firmer response by the market participants to hawkish commentary from the Federal Reserve (Fed). However, the gold prices have sensed some significant bids below the round-level support of $1,850.00.

Fed Governor Christopher Waller has underpinned uncertainty in the FX domain after dictating an extreme hawkish commentary, which should be beyond the expectations of the investing community. Advocating a spree of interest rate hikes by 50 basis points (bps) by the Fed till if find a substantial reduction in the inflation rate. There is no denying the fact that the ongoing inflation mess in the US economy requires blood and sweat from the Fed and taming inflation is the need of the hour.

On the dollar front, the US dollar index (DXY) is oscillating around 101.60 as investors await the US Nonfarm Payrolls (NFP). Investors are expecting the release of the US NFP at 320k against the prior print of 428k.

Gold technical analysis

On an hourly scale, the precious metal has bounced back sharply after hitting the ascending trendline of the Symmetrical Triangle. The ascending triangle of the above-discussed chart pattern is placed from May 20 low at $1,832.41 while the descending trendline is plotted from May 24 high at $1,869.75. The gold prices are overlapping the 50-period Exponential Moving Average (EMA), which is trading at $1,854.45 on a broader picture.

Meanwhile, the Relative Strength Index (RSI) (14) has bounced back after hitting 40.00, which signals a responsive buying action.

Gold hourly chart