Gold Price Forecast: XAU/USD gains momentum near $2,020, FOMC Minutes eyed

Gold price attracts some buyers around $2,020 in Tuesday’s early European session.
Higher-than-expected US inflation figures fuelled speculation of a delay in the Fed’s move towards monetary policy easing.
The rising Middle East geopolitical tensions and economic uncertainties lift the yellow metal.
The FOMC Meeting Minutes will be the highlight of this week.

Lallalit Srijandorn FXStreet

Gold price gains momentum for the fourth straight day during the early European session on Tuesday. The yellow metal trades in positive territory despite the rebound of the US Dollar (USD) and higher bond yields. Trading activity was low on Monday as markets closed in the US. However, investors will take more cues from the FOMC Minutes on Wednesday about the outlook for US interest rates. At press time, the gold price is trading at $2,020, adding 0.09% on the day.

Meanwhile, the US Dollar Index (DXY), which measures the value of the USD relative to a basket of global currencies, posts modest gains near 104.35. The US Treasury yields edge higher, with the 10-year yield standing at 4.30%.

Given the stronger-than-expected recent US data, investors lower their bets on the rate cut expectations, which provide some support for the US Dollar (USD). According to the CME FedWatch Tool, the markets have priced in the first 25 basis points (bps) rate cut by the Fed in the June 2024 meeting.

On the other hand, the global central banks are likely to diversify foreign reserves and accumulate gold to hedge in their portfolios amid ongoing geopolitical tensions in the Middle East and economic uncertainties. This, in turn, could boost the demand for gold, a traditional safe-haven asset.

The FOMC Meeting Minutes will be released on Wednesday, and it might provide further insights into why Fed officials are not confident enough to begin easing policy in Q1 2024. On Thursday, the preliminary US S&P Global PMI for February will be due. These events could give a clear direction to the gold price.

XAU/USD

Overview
Today last price	2019.54
Today Daily Change	1.45
Today Daily Change %	0.07
Today daily open	2018.09

Trends
Daily SMA20	2023.38
Daily SMA50	2032.25
Daily SMA100	1997.84
Daily SMA200	1965.58

Levels
Previous Daily High	2023.05
Previous Daily Low	2011
Previous Weekly High	2033.39
Previous Weekly Low	1984.26
Previous Monthly High	2079.01
Previous Monthly Low	2001.9
Daily Fibonacci 38.2%	2018.45
Daily Fibonacci 61.8%	2015.6
Daily Pivot Point S1	2011.71
Daily Pivot Point S2	2005.33
Daily Pivot Point S3	1999.66
Daily Pivot Point R1	2023.76
Daily Pivot Point R2	2029.43
Daily Pivot Point R3	2035.81

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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