• Gold price has extended its recovery to near $1,950.00 as the USD Index has dropped sharply.
• Investors have started shrugging off fears associated with expectations of more interest rate hikes by the Fed.
• Gold price is hovering near the upward-sloping trendline of the Ascending Triangle chart pattern.

Gold price (XAU/USD) attempted a recovery after dropping to near $1,940.00. The precious metal has extended its rebound move to near $1,950.00 as the US Dollar Index (DXY) has dropped sharply. Broader choppiness in the USD Index has kept investors on their toes. An absence of potential triggers this week has bounded the USD Index in a limited territory.

S&P500 futures have recovered their entire losses and have turned positive, showing signs of recovery in the risk appetite of the market participants. It seems that investors have started shrugging off fears associated with expectations of more interest rate hikes by the Federal Reserve (Fed).

The USD Index has found an intermediate support around 103.80, however, the situation for the USD index seems vulnerable as the market sentiment has turned cheerful. In spite of the short-term correction, strength in the USD Index would stay as the Fed is expected to remain hawkish further.

Meanwhile, a survey from Reuters showed that “It would take rate cuts from the Federal Reserve to weaken the currency substantially.” Also, Fed would pause in June for the first time in more than a year and keep its key interest rate at 5.00%-5.25% then and for the rest of the year.