After a corrective move, the gold price should find support around $1,650, and talk of the US gross domestic product (GDP) is making the market excited

After a massive upswing, the gold price (XAU/USD) is correcting in a healthy way during the Tokyo trading session. As the downward bias is not supported by momentum, the precious metal should attract strong buying interest near the $1,650.00 support level. Thus, after the correction ends, the precious metal will continue climbing.

Gold prices have dropped slightly since the US dollar index has shown signs of weakness (DXY). The DXY fell after it was unable to maintain a price above the key resistance level of 144.50. To sum up, the DXY appears to be nearing its peak, which coincides with the Federal Reserve's target of 4.6% for the overnight rate of interest (Fed).

After analyzing the Fed's current interest rate hike velocity, it is important to remember that the Fed's peak interest rate is not far from the present interest rate of 3.-3.325%. Until the Fed detects a prolonged softening in price pressures, the terminal rate is likely to remain at 4.6% for a while longer.

The US Gross Domestic Product (GDP) figures will be closely monitored by investors on Thursday. According to the early forecasts, the annualized GDP in the United States will continue its downward trend by 0.6% in the third quarter.

Gold is falling on an hourly chart, and it is getting close to the horizontal support at $1,649.83, which was set from Monday's high. Since the price of gold is falling steadily, it is likely to take advantage of the horizontal support described above. A reversal of polarity will be indicated, and the shiny metal will start to act more impulsively.

Short-term buyers have been able to keep gold prices above the 50-period Exponential Moving Average (EMA) at $1,641.58. Although gold has fallen below the 200-day exponential moving average (EMA) at $1,655.00, it is likely to regain that level in the near future.

In the meantime, the Relative Strength Index (RSI) (14) is trending upwards within a bullish range of 60.00-80.00, suggesting further gains. The momentum oscillator may also find support near 60.00.