Gold Price Forectast: XAU/USD rises above $4,600 on US rate cut expectations, Fed uncertainty

• Gold price jumps to near $4,600 in Wednesday’s early Asian session. 

• The prospect of further US rate cuts and questions over Fed independence continue to support safe-haven gold. 

• The US Retail Sales and PPI data will be the highlights later on Wednesday. 

Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data. Traders will take more cues from the US Retail Sales and Producer Price Index (PPI) data later in the day. 

The recent US Consumer Price Index (CPI) inflation report provides some support to the yellow metal as core CPI fell short of analyst expectations, raising the chances of the US Federal Reserve (Fed) continuing to cut interest rates this year. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

Additionally, uncertainty surrounds the US central bank amid renewed threats by the US President Donald Trump administration. The Islamic Republic’s security forces have cracked down on large-scale demonstrations, with hundreds of people reportedly dead. 

The government has cut off Internet access in Iran, making it difficult to verify how the situation is evolving on the ground. Trump has repeatedly threatened to intervene if the government kills protesters.

The US Retail Sales and PPI data will take center stage on Wednesday. These reports could offer some hints about the US interest rate path. Any signs of hotter inflation in the US could boost the US Dollar (USD) and weigh on the USD-denominated commodity price in the near term.