[ad_1]
Investors abandoned the US dollar following the monetary policy decisions of the US Federal Reserve Bank, which helped the XAU/USD gold price to rebound strongly. The gains that reached the $2036 resistance level, at the time of writing the analysis. It is now the closest to breaching the $2048 resistance, the top of mid-April. Overall, the price of gold extended its gains on the back of a weaker US dollar and lower yields amid broader economic uncertainty, as investors digest the recent Federal Reserve decision to raise interest rates.
As widely expected, the Fed raised US interest rates by 25 basis points and signaled it may pause further hikes, giving US officials time to assess the fallout from the latest banking crisis, wait for the political standoff over the debt ceiling to be resolved, and monitor the inflation path.
Prior to this, XAU/USD gold prices fell briefly after data showed that US private employers boosted hiring in April, but quickly reversed course with 10-year Treasury yields falling and the dollar index down 0.5%.
For his part, Bob Haberkorn, senior market analyst at RGO Futures, said in a note to Reuters: “If they indicate a pause in raising interest rates, then the price of gold should rise significantly, or if they indicate a continuation of the rise, then it is likely that it will be sold.” gold. Bullion prices gained 1% last month as the US banking crisis prompted a flight to safety.
Commenting on market performance. “The gold price is caught between growing concern about the US banking crisis and uncertainty about the Fed’s position, but difficulties surrounding a bipartisan debt ceiling agreement have the potential to provide further support,” said Ricardo Evangelista, senior analyst at ActivTrades.
- The stability of the XAU/USD gold price is still above the psychological resistance at $2000 an ounce.
This supports the strength of the bullish trend. - With the decline in the price of the US dollar following the decisions of the US Federal Reserve, the bulls may find the opportunity to breach important record highs of 2048 and 2070 dollars, respectively.
On the other hand, according to the performance on the daily chart below, the gold price will not give up its bullish outlook without returning to the vicinity of the $1985 support level again. The price of gold may remain stable around its gains until the markets and investors react to the interest rate decisions of the European Central Bank today and the US job numbers tomorrow.
Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.
[ad_2]