The Gold price forecast (XAU/USD) sees the precious metal sustaining its upward trajectory amid global economic uncertainties and market volatility. Currently, Gold trades near $2,375.77, having reached an intra-day high of $2,376.49.

The appeal of gold as a safe-haven asset is reinforced by recent geopolitical tensions and weaker-than-expected labour market data from the U.S.

Hawkish Fed Stance Amid Inflation Concerns

Despite the dovish expectations due to the job market’s slowdown, some Fed officials maintain a hawkish outlook, emphasizing persistent inflationary pressures. This juxtaposition adds complexity to the gold market’s dynamics, as investors weigh the potential for rate cuts against the backdrop of enduring inflation.

Escalating Middle East Tensions Fuel Safe-Haven Demand

The breakdown of peace talks in the Middle East, particularly between Hamas and Israel, has escalated regional tensions, significantly bolstering gold’s status as a safe-haven asset during times of geopolitical strife.

Upcoming Economic Indicators Could Sway Fed’s Hand

Investors are now keenly awaiting the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) releases. These figures will be crucial in shaping market expectations regarding the Federal Reserve’s future monetary policy decisions.

Technically, gold’s current position above the pivotal $2,345.71 level suggests sustained investor interest. Should gold breach the immediate resistance at $2,372.66, it could target higher resistances at $2,393.38 and $2,416.87.

Conversely, supports are established at $2,327.06 and further down at $2,306.33, crucial for cushioning any potential price pullbacks.