Gold Price Forecast: XAU/USD holds firm amid mixed US data, eye US PCE figures

Source Fxstreet
  • Gold modestly recovers, influenced by strong US GDP and falling Treasury yields.
  • Mixed US data: unchanged Durable Goods Orders and higher jobless claims fuel market uncertainty and Fed rate cut speculations.
  • Markets await US PCE Price Index and Fed policy decision; Middle East tensions also impact dynamics.

Gold price recovered after sliding more than 0.70% on Wednesday and rising 0.35% on Thursday amid robust US data and falling US Treasury bond yields. At the time of writing, XAU/USD exchanges hands at $2020.40, virtually unchanged as the Asian Pacific session begins.

XAU/USD remains steady after strong US GDP and weak durable goods and labor market data

In the fourth quarter of last year, the US economy grew 3.3% on a quarterly basis, which, although trailing Q3’s figures, exceeded estimates of a mediocre 2% by analysts. All that said, for the entire year, the US Gross Domestic Product (GDP) in 2023 rose by 2.5%, higher than in 2022 by 1.9%.

Meanwhile, further data was mixed, with Durable Goods Orders surprisingly standing at 0% in December, below forecasts for a 1.1% increase and trailing November’s 5.5% reading. At the same time, US Initial Jobless Claims for the latest week jumped from 189K to 214K, higher than foreseen.

Following the data, traders remained cautious about pricing in the first Federal Reserve rate cut in March, with probabilities slumping below 50%. Nevertheless, investors are expecting the first cut in May and projecting five more, meaning the Federal funds rate (FFR) is scheduled to end at 4%, from 5.25%-5.50%.

Falling US Treasury yields bolstered Gold’s performance, as the European Central Bank’s (ECB) decision to hold rates triggered a rally in the bond market, as speculations for rate cuts piled up. Therefore, global bond yields plunged, with the US 10-year benchmark note plummeting six basis points to 4.12%.

In addition to this, the latest geopolitical developments in the Middle East sparked a recovery in the non-yielding metal prices after Houthis attacked two US flag Maersk ships that the US Navy escorted.

All in all, Gold traders brace for the release of the Fed’s preferred gauge for inflation, the Personal Consumption Expenditures (PCE) Price Index for December, ahead of next week’s monetary policy decision by Fed Chairman Jerome Powell and Co.

XAU/USD Price Analysis: Technical outlook

Even though Gold staged a comeback, it could be short-lived after failing to reclaim the 50-day moving average (DMA) at $$2029.91, which could pave the way to retest the $2000 barrier. A drop below that level might accelerate the downtrend towards the 100-DMA at $1978.55 before clashing with the 200-DMA at $1964.43. On the flip side, if XAU’s buyers regain the 50-DMA, upside risks will emerge at $2050.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil Price Forecast: Brent Nears $110 Amid Saudi Pipeline Outage, How Much Further Can Oil Rise?Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
Author  TradingKey
14 hours ago
Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
14 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
21 hours ago
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
Silver Price Forecast: XAG/USD falls to near $63.50 amid Fed hike bets, higher oil pricesSilver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
Author  FXStreet
Yesterday 10: 37
Silver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
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
Yesterday 07: 49
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.
Related Instrument
goTop
quote