Gold Price Forecast: XAU/USD holds below $2,030 ahead of the PBoC rate decision

Source Fxstreet
  • Gold price loses ground near $2,027 on robust US data.
  • US University of Michigan consumer sentiment rose to its highest since July 2021, coming in at 78.8 in January vs. 69.7 prior.
  • Investors await the People’s Bank of China interest rate decision on Monday.

Gold price (XAU/USD) drifts lower to $2,027 during the early Asian session on Monday. The robust US economic data have triggered the expectation that the Federal Reserve (Fed) might delay interest rate cuts, which boost the US Dollar (USD). The key support level of yellow metal is seen at the $2,000 psychological mark. The US Core Personal Consumption Expenditures Price Index (Core PCE) for December on Friday might trigger volatility in the market.

US consumer sentiment improved in January, hitting the highest level since July 2021. The University of Michigan's preliminary reading on the consumer sentiment index arrived at 78.8 in January versus 69.7 in December, better than the market expectation of 70.0.

On Friday, San Francisco Federal Reserve Bank President Mary Daly stated that the central bank has a lot of work left to do on bringing inflation back down to the Fed's 2% target and that it’s premature to think about interest rate cuts. Nonetheless, two key events this week might determine at least which way central bank policymakers could lean on policy. The US GDP growth numbers will be due on Thursday, and the Core PCE will be released on Friday. The weaker US data is likely to convince the Fed to tilt toward the dovish side and cap the downside of the gold price.

The People’s Bank of China is expected to leave the benchmark one- and five-year loan prime rates (LPR) unchanged at 3.45% and 4.20%, respectively. Bearish sentiment toward China has intensified as the latest economic data indicates that the world's second-biggest economy continues in a slump. Any negative development surrounding Chinese economy could drag the gold price lower, as China is one of the world's largest gold consumers. 










 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for cryptoThe US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
Author  Suzie
Sep 16, Wed
The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
Sep 17, Thu
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
placeholder
Gold rebounds to near $4,350 on weaker US Dollar, falling oil pricesGold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.
Author  FXStreet
Yesterday 01: 32
Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.
placeholder
US to delay new "overcapacity" tariffs on China — what the pause means for trade, inflation and the dollarWashington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.
Author  Mitrade
Yesterday 07: 43
Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.
Related Instrument
goTop
quote