Gold price (XAU/USD) is testing the upside break of the consolidation formed in a narrow range of $1,806.60-1,809.89 in the early Tokyo session. On a broader note, the precious metal has turned sideways after a firmer rebound from Friday’s low at $1,784.55.

The gold prices are likely to remain on the tenterhooks ahead of the release of the Federal Open Market Committee (FOMC) minutes on Wednesday. The detailed viewpoint from Federal Reserve (Fed) policymakers on the economic indicators of the US economy especially on the inflation rate and growth projections will support the market participants to adjust their positions on associated assets. Also, investors will be able to scrutiny the further direction of the yellow metal and US dollar index (DXY) in a more informed manner.

Meanwhile, the DXY is holding itself above the psychological resistance of 105.00 comfortably. The DXY is expected to remain sideways till the European session as higher volatility at the open leads to a contraction in the same. This week, apart from the Fed minutes, the US Nonfarm Payrolls (NFP) will be of significant importance. As per the market consensus, the US economy added 270k jobs in June, lower than the prior release of 390k.