Gold Price (XAU/USD) Holds Steady as Market Awaits FOMC Meeting

GOLD Price (XAU/USD) maintains modest gains as it breaks a three-day downtrend and consolidates the weekly losses, preparing for the upcoming Federal Open Market Committee (FOMC) monetary policy meeting. Despite concerns over the FOMC announcement and ongoing US-China tensions, stronger Treasury bond yields have weighed on XAU/USD. However, weaker-than-expected US inflation figures, as indicated by the Consumer Price Index (CPI) and Core CPI for May, have put downward pressure on the US Dollar and reignited demand for Gold.

While US inflation has posed a challenge to the Federal Reserve’s rate hike cycle, the central bank is not expected to adopt a dovish stance. Attention is focused on economic forecasts, the dot plot, and Chairman Jerome Powell’s press conference for clearer guidance. If Fed policymakers suggest a rate hike in July and beyond, GOLD Price could lose its appeal. Conversely, dovish remarks could propel XAU/USD above the $1,960 level.

Gold Technical Outlook

GOLD prices closed below the $1945.20 level, indicating a continuation of the correctional bearish trend towards the next target at $1913.15. Positive Stochastic readings may lead to temporary upward movement, with a potential test of $1963.00 and further extension to $1977.25. The expected trading range for today is between support at $1930.00 and resistance at $1960.00.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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