Gold Price Forecast: XAU/USD holds below $2,400 on Fed hawkish comments, eyes on geopolitical risks

FXStreet
Updated Apr 22, 2024 24:58
Mitrade

■  Gold price trades on a softer note near $2,385 on Monday. 

■  The hawkish shift in market sentiment could dampen demand for yellow metal. 

■  The rising conflict between Israel and Iran might lift the gold price. 


Gold Price (XAU/USD) attracts some sellers around $2,385 on Monday during the early Asian trading hours. The hawkish comments by Federal Reserve (Fed) officials have capped the precious metal’s upside. However, the escalating tensions in the Middle East might boost safe-haven assets like gold. 

The probability that the US Fed will keep interest rates unchanged this year is rising. New York Fed President John Williams said last week that another rate hike isn’t his base case, but if the data are telling the Fed to hike to achieve its goals, then the Fed would obviously want to do that.


 Chicago Fed President Austan Goolsbee said that inflation progress had “stalled” and the Fed’s current restrictive policy is appropriate. Atlanta Fed President Raphael Bostic emphasized that the Fed wouldn’t cut rates until the end of the year. The hawkish shift in market sentiment could diminish the appeal of non-yielding metals and weigh on the gold price. 

Geopolitical tensions between Israel and Iran intensified in recent weeks. A suspected Israeli attack on an Iranian consulate in Syria earlier this month was followed by Iran's retaliatory attack on Israel on April 13. Iran and Israel seem to have stepped back from the brink of a broader conflict as lawmakers in the US approved new Israeli military aid on Saturday. However, investors will monitor the developments surrounding the Middle East conflict. The rising tension in the region could boost the gold price, and traditional safe-haven assets. 


XAU/USD


Overview
Today last price 2383.47
Today Daily Change -8.99
Today Daily Change % -0.38
Today daily open 2392.46
 
Trends
Daily SMA20 2302.04
Daily SMA50 2173.77
Daily SMA100 2103.94
Daily SMA200 2020.49
 
Levels
Previous Daily High 2417.79
Previous Daily Low 2372.87
Previous Weekly High 2417.79
Previous Weekly Low 2324.33
Previous Monthly High 2236.27
Previous Monthly Low 2039.12
Daily Fibonacci 38.2% 2400.63
Daily Fibonacci 61.8% 2390.03
Daily Pivot Point S1 2370.96
Daily Pivot Point S2 2349.45
Daily Pivot Point S3 2326.04
Daily Pivot Point R1 2415.88
Daily Pivot Point R2 2439.29
Daily Pivot Point R3 2460.8

* 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.

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