Gold Price Forecast: XAU/USD remains steady above $2,350 amid market caution

Source Fxstreet
Apr 17, 2024 03:59
  • Gold price hovers close to record highs amid market caution ahead of Israel's response to Iran's assault.
  • Israel's third meeting of the war cabinet, initially scheduled for Tuesday, was postponed until Wednesday.
  • Gold demand may encounter hurdles as Fed Chair Powell emphasized that reaching the 2% inflation target will require more time than previously expected.

Gold price holds ground near $2,380 per troy ounce on Wednesday, hovering close to record highs as traders exercise caution ahead of Israel's response to Iran's air strike on Saturday. A Reuters report indicated that a third meeting of Israel's war cabinet, initially scheduled for Tuesday to decide on a reaction to Iran's unprecedented direct attack, was postponed until Wednesday.

Furthermore, sources cited by The Jerusalem Post disclosed that Israel has purportedly finalized plans for a counterstrike against Iran. US National Security Advisor Jake Sullivan announced late on Tuesday that new sanctions targeting Iran, alongside sanctions against entities supporting the Islamic Revolutionary Guard Corps and Iran's Defense Ministry, will be enforced in the coming days.

Meanwhile, Federal Reserve (Fed) Chairman Jerome Powell, speaking at the Wilson Center in Washington on Tuesday, tempered expectations for rate cuts. Powell noted that the US economy has shown significant strength and recent data indicates a lack of substantial progress on inflation this year. He emphasized that achieving the 2% inflation target will take "longer than expected." The prospect of higher interest rates typically reduces the appeal of non-yielding assets such as Gold.

According to the CME FedWatch Tool, the likelihood of interest rates remaining unchanged in the June meeting has risen to 84.8% from Monday’s 78.7%. Investors will closely monitor speeches from Federal Reserve officials this week, as well as Thursday's US Initial Jobless Claims, for further insight into the direction of monetary policy.

XAU/USD

Overview
Today last price 2381.98
Today Daily Change -0.36
Today Daily Change % -0.02
Today daily open 2382.34
 
Trends
Daily SMA20 2271.69
Daily SMA50 2153.19
Daily SMA100 2093.83
Daily SMA200 2014.08
 
Levels
Previous Daily High 2398.29
Previous Daily Low 2363.1
Previous Weekly High 2431.61
Previous Weekly Low 2303.02
Previous Monthly High 2236.27
Previous Monthly Low 2039.12
Daily Fibonacci 38.2% 2376.54
Daily Fibonacci 61.8% 2384.85
Daily Pivot Point S1 2364.2
Daily Pivot Point S2 2346.05
Daily Pivot Point S3 2329.01
Daily Pivot Point R1 2399.39
Daily Pivot Point R2 2416.43
Daily Pivot Point R3 2434.58

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Source  Fxstreet
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