- Gold price maintains a position above $1,930 to extend gains ahead of policy decisions from major central banks.
- US Dollar (USD) weakens on the possibility of no interest rate hike by the Fed in September; bolstering the prices of Gold.
- Fed is expected to attempt a 25 basis points interest rate hike through the end of the year 2023.
Gold price holds ground to continue the winning streak for the fourth consecutive day, trading around $1,930 during the early trading hours of the Asian session on Tuesday. The pair is facing upward support ahead of the interest rate decisions from the major central banks.
The retracement of the US Dollar (USD) is a significant factor bolstering the price of Gold. The market participants turn cautious following the likelihood of the US Federal Reserve (Fed) to keep interest rates unchanged in the upcoming meeting scheduled for Wednesday. Investors will closely analyze the central bank's statements, looking for any indications or information regarding potential future interest rate movements.
The markets are factoring in a 25 basis point rate hike by the end of 2023. Additionally, the resilience of recent economic data from the US is bolstering the possibility that the Fed may keep interest rates higher for a prolonged period, which could put a cap on the potential of the yellow metal.
The US Dollar Index (DXY), which assesses the performance of the US Dollar (USD) against six other major currencies, struggles to hold ground at around 105.10 at the time of writing. The US Treasury yields look to extend the losses registered on Monday. The yield on the US 10-year bond has declined to 4.30% by the press time. The downbeat yields are undermining the strength of the Greenback.
Following a similar path as the European Central Bank (ECB) last week, the Bank of England (BoE) is anticipated to implement a cautious 25 basis point interest rate increase in the meeting on Thursday, with a focus on the potential risks associated with stagflation.
Meanwhile, market participants are pricing in the likelihood that the Bank of Japan (BoJ) will continue to maintain its highly accommodative monetary policy stance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold gives away some gains, slips back to $2,980
Gold retraced from its earlier all-time highs above the key $3,000 mark on Friday, finding a footing around $2,980 per troy ounce. Profit-taking, rising US yields, and a shift to a risk-on environment seem to be putting the brakes on further gains for the metal.
EUR/USD remains firm and near the 1.0900 barrier
EUR/USD is finding its footing and trading comfortably in positive territory as the week wraps up, shaking off two consecutive daily pullbacks and setting its sights back on the pivotal 1.0900 mark—and beyond.
GBP/USD remains depressed, treads water in the low-1.2900s
GBP/USD is holding steady in consolidation territory after Friday’s opening bell on Wall Street, hovering in the low-1.2900 range. This resilience comes despite disappointing UK data and persistent selling pressure on the USD.
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.