Market news
01.05.2024, 03:09

Gold Price Forecast: XAU/USD snaps two-day losing streak above $2,280 ahead of Fed rate decision

  • Gold price trades on a positive note near $2,288 on Wednesday. 
  • The Federal Reserve is widely expected to keep rates steady; Fed’s Powell is anticipated to maintain a hawkish stance. 
  • The rising geopolitical risks could boost traditional safe-haven assets like gold. 

Gold price (XAU/USD) posts modest gains around $2,288 on Wednesday during the Asian session. The precious metal edges higher as markets turn to a cautious mood ahead of the Federal Reserve's (Fed) monetary policy meeting on Wednesday. Elsewhere, the US ISM Manufacturing PMI and ADP Employment Change are due later in the day. 

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against a weighted basket of currencies used by US trade partners, recovers to a weekly high of 106.40. The US Treasury bond yields edge lower, with the 10-year yield falling to 4.67%.

 The US Fed is expected to hold interest rates steady at its May meeting on Wednesday and maintain its hawkish stance. Fed easing expectations have been pushed out further, with the odds of a June cut falling to around 10% and the chance of September rate cuts dropping below 75%, according to the CME FedWatch tool. Investors will take more cues from the Press Conference after the Fed meeting. The hawkish tone of the Fed might lift the Greenback and diminish the appeal of non-yielding metals. 

On the other hand, China, the world's top gold consumer, has bought gold steadily since October 2022, marking its longest buildup of the precious metal since at least 2000. This, in turn, helps boost the further upside of the precious metal. 

Furthermore, China's massive and ongoing central bank gold purchases are increasing suspicions that the government may not only be strengthening its currency but also laying the economic groundwork for a full-scale invasion of Taiwan, a Telegraph report reported Tuesday. Gold traders will monitor the developments surrounding the China-Taiwan tension, along with the geopolitical tensions in the Middle East. Any escalating tension risks might boost safe-haven flows and benefit the gold price

XAU/USD

Overview
Today last price 2288.09
Today Daily Change 2.36
Today Daily Change % 0.10
Today daily open 2285.73
 
Trends
Daily SMA20 2340.95
Daily SMA50 2217.63
Daily SMA100 2124.94
Daily SMA200 2033.02
 
Levels
Previous Daily High 2336.33
Previous Daily Low 2285.21
Previous Weekly High 2392.46
Previous Weekly Low 2291.47
Previous Monthly High 2431.61
Previous Monthly Low 2228.58
Daily Fibonacci 38.2% 2304.74
Daily Fibonacci 61.8% 2316.8
Daily Pivot Point S1 2268.52
Daily Pivot Point S2 2251.3
Daily Pivot Point S3 2217.4
Daily Pivot Point R1 2319.64
Daily Pivot Point R2 2353.54
Daily Pivot Point R3 2370.76

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location