Gold Price Forecast: XAU/USD Fluctuates As Fed’s Pushes Back On Rate Cuts
Image Source: Pixabay
Gold price trims earlier gains and retreats after the US Federal Reserve decided to keep rates unchanged while pushing back against speculation of rate cuts. At the time of writing, XAU/USD trades volatile within the $2030 - $2050 area as market participants await Fed Chairman Jerome Powell’s decision.
XAU/USD trades volatile following the Fed’s decision
In its monetary policy meeting, Fed officials voted unanimously to keep rates unchanged. They noted that it would be appropriate to reduce rates until there is greater confidence that inflation is sustainably moving toward its 2% goal. The Fed added that risks of achieving the Fed dual mandate are moving into better balance and emphasized that the committee will remain “highly attentive” to inflation risks.
Regarding the reduction of the balance sheet, it would remain as previously described while tightening restrictions on all Fed staff with access to confidential FOMC information.
After the data, the US 10-year Treasury note yield spiked to 4% before retreating somewhat towards 3.97%. At the same time, the US Dollar Index (DXY) aimed toward 103.50 before getting back to 103.35.
XAU/USD Reaction to Fed’s Decision
Gold dived toward the $2040 area after the Fed’s decision, though it remains seesawing, as mentioned in the first paragraph, capped at $2050. Although XAU/USD hovers at around $2040, downside risks remain, as the Fed’s statement was perceived as hawkish, though the Fed’s Chair Jerome Powell would cross the wires at around 19:30 GMT.
Key resistance lies at the daily high at $2055.98, followed by $2090, ahead of $2100. On the flip side, support emerges at $2032.14, the day’s low, followed by the January 25 low of $2009.66.
(Click on image to enlarge)
XAU/USD
| OVERVIEW | |
|---|---|
| Today last price | 2045.38 |
| Today Daily Change | 9.32 |
| Today Daily Change % | 0.46 |
| Today daily open | 2036.06 |
| TRENDS | |
|---|---|
| Daily SMA20 | 2029.56 |
| Daily SMA50 | 2031.42 |
| Daily SMA100 | 1980.82 |
| Daily SMA200 | 1964.98 |
| LEVELS | |
|---|---|
| Previous Daily High | 2048.65 |
| Previous Daily Low | 2029.15 |
| Previous Weekly High | 2037.95 |
| Previous Weekly Low | 2009.65 |
| Previous Monthly High | 2144.48 |
| Previous Monthly Low | 1973.13 |
| Daily Fibonacci 38.2% | 2041.2 |
| Daily Fibonacci 61.8% | 2036.6 |
| Daily Pivot Point S1 | 2027.26 |
| Daily Pivot Point S2 | 2018.45 |
| Daily Pivot Point S3 | 2007.76 |
| Daily Pivot Point R1 | 2046.76 |
| Daily Pivot Point R2 | 2057.45 |
| Daily Pivot Point R3 | 2066.26 |
More By This Author:
Silver Price Forecast: Silver Consolidates Slightly Above $23 Ahead Of Fed Policy
EUR/USD Falls Sharply To Near 1.0800 On Weak German Retail Sales Data, Fed Policy Eyed
WTI Inches Lower To Near $77.40 Despite A Threat Of Oil Supply Disruption, Chinese Data
Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...
more
Comments
