Gold Price Forecast: XAU/USD Hovers Around $2,030, US Services PMI Eyed
Trending Articles- Iran threatens to completely close Strait of Hormuz if US bombs power plants
- Gold Prices Under Pressure After Hitting $4,600, UBS: Safe-Haven Logic Unchanged But Only Delayed.
- Trump TACO Trade Saves Market, But Who Are the First Victims of the TACO Trade?
- US-Iran Rift Persists, Will Gold Rise or Fall Next?
- Gold Suffers Epic Plunge, March Cumulative Decline Exceeds 20%. Has Gold Become a Risk Asset?
- Gold rallies on hopes for US-Iran talks and falling US Treasury yields
■ Gold price posts modest gains around $2,030 in early Monday.
■ The futures market is pricing the possibility that the Fed won't raise rates further in its next meetings.
■ The US Services PMI will be due on Tuesday.
Gold price (XAU/USD) edges lower to $2,030 during the early Asian session on Tuesday. Meanwhile, the US Dollar Index (DXY) rose to 103.60 and the Treasury yields edge higher, with the 10-year yield recovering from 4.24% to 4.32%. At press time, gold price is trading at $2,030, up 0.12% on the day.
Federal Reserve (Fed) Chair Powell emphasized the Fed's willingness to tighten policy further if necessary and the markets were confident the rate-hike cycle was done. Powell stated that it was clear that US monetary policy was slowing the economy as expected, with the benchmark overnight interest rate well into restrictive territory. The anticipation of the tightening cycle ending might benefit the yellow metal. That being said, gold tends to rise with lower interest rates, whereas higher interest rates put pressure on the yellow metal.
About the data, the US Census Bureau revealed on Monday that the US factory orders fell 3.6% MoM in October from a 2.3% rise in the previous reading. Elsewhere, an attack on an American warship and commercial vessels in the Red Sea on Sunday fueled the fear of escalating conflicts between Israel and Hamas. This, in turn, might boost the safe-haven flow and benefit the yellow metal.
Looking ahead, the November US ISM Non-Manufacturing PMI and JOLTs Job Openings will be widely monitored.
* 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.
