Gold Rebounds on Dovish Fed Hints, Eyes $2,000 Milestone

Gold's (XAU/USD) value is witnessing a notable upturn, with prices rebounding from the $1,965 area to gain traction in Tuesday's Asian session.

Arslan Butt•Tuesday, November 21, 2023•1 min read

Gold‘s (XAU/USD) value is witnessing a notable upturn, with prices rebounding from the $1,965 area to gain traction in Tuesday’s Asian session. The impetus for this rise is twofold: recent U.S. job market data indicating a slowdown and softer inflation pressures, both of which suggest the Federal Reserve may soon relax its hawkish monetary stance.

The decline in U.S. Treasury yields, which has driven the U.S. dollar to its lowest point since late August and increased the allure of non-yielding gold, underlines this sentiment.

The ascent in gold prices seems undeterred by the prevailing risk-on sentiment in global markets, typically a dampener for safe-haven assets. China’s commitment to additional economic stimulus has bolstered investor confidence, yet the weaker U.S. dollar remains a pivotal booster for the precious metal.

The focus now turns to the upcoming FOMC minutes, which could provide clearer signals on the Fed’s rate trajectory, a critical determinant for gold’s momentum.

Gold’s technical landscape echoes its bullish sentiment, with a clear bounce from the supportive trendline of its intraday bullish channel. The path appears set for gold to approach—and potentially surpass—the $2,000 threshold, with the 50-day EMA providing sustained support. Nonetheless, vigilance is warranted, as the Fed’s nuanced commentary on future rate hikes—particularly if more aggressive than expected—could temper gold’s advance.

As the market parses the FOMC minutes for direction, gold traders are poised to capitalize on the precious metal’s near-term bullish prospects.

Gold Live Chart

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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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Gold Rebounds on Dovish Fed Hints, Eyes $2,000 Milestone

Gold's (XAU/USD) value is witnessing a notable upturn, with prices rebounding from the $1,965 area to gain traction in Tuesday's Asian session.

Gold Live Chart

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Gold Rebounds on Dovish Fed Hints, Eyes $2,000 Milestone

Gold's (XAU/USD) value is witnessing a notable upturn, with prices rebounding from the $1,965 area to gain traction in Tuesday's Asian session.

Gold Live Chart

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Sidebar rates

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