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
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 26, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
Author  Mitrade
Yesterday 01: 52
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Yesterday 05: 32
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Gold breaks $4,000 as oil becomes the inflation problem — $3,943 is the line that mattersSpot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
Author  Irene Q.
23 hours ago
Spot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
placeholder
Bitcoin Price Forecast: Drops Below $80,000 in Fifth Straight Loss, May Test $75,000 as FOMC Meeting Approaches Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Author  TradingKey
19 hours ago
Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Related Instrument
goTop
quote