Gold Price Forecast: XAU/USD declines below $4,050 on USD strength and hawkish Fed comments
Trending Articles- US-Iran Agreement Brought Forward: Pakistani Prime Minister Confirms US-Iran Agreement Has Taken Effect Immediately, Strait of Hormuz Will Reopen Immediately
- Bitcoin network activity hits new high despite stalled prices — CryptoQuant
- WTI Price Forecast: Trades above $75.50 on Iran uncertainty; 200-day SMA holds the key
- Gold Price Forecast: Hawkish Fed Triggers Gold Plunge, Can US-Iran Agreement Push Gold Past $4,360?
- Deutsche Bank Slashes Gold Price Forecast by 22%: Wall Street Bulls Retreat, Fed Rate Hike Expectations Become Biggest Drag
- Qatar and Pakistan: High-level committee agrees on roadmap to final deal within 60 days
Gold price trades with mild losses near $4,030 in Tuesday’s early Asian session.
Renewed US dollar demand and hawkish Fed comments weigh on the Gold price.
China raised its Gold reserves by 15 tons in September.
Gold price (XAU/USD) extends the decline to around $4,030 during the early Asian session on Tuesday. The precious metal edges lower as traders dialed back expectations of a US interest rate cut next month. Traders will closely monitor the US September Nonfarm Payrolls (NFP) report later on Thursday.
Meanwhile, the US Dollar strengthens for the third consecutive day, making bullion expensive for holders of other currencies. Traders are still seeking insight into the Federal Reserve’s (Fed) monetary policy following the end of the longest government shutdown in U.S. history, which delayed the publication of official economic statistics.
Additionally, hawkish remarks from the Fed officials contribute to the yellow metal’s downside. Several Fed policymakers, including Atlanta Fed President Bostic and Kansas City Fed President Schmid, voiced concerns about inflation or signaled support for holding rates steady.
Traders are currently pricing in a 45% chance of a 25 basis points (bps) rate cut in December, down from more than 60% last week, according to the CME FedWatch tool. UBS analysts believe the “totality of the data” expected before the December meeting will not be enough to deter the growing sentiment in favor of backing the third rate cut of this year.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
