Gold Price Forecast: XAU/USD loses ground below $2,040, US GDP data eyed


  • Gold price holds below the mid-$2,000s amid a stronger US Dollar. 
  • The Federal Reserve (Fed) officials warned patience is needed before beginning to cut rates.
  • The ongoing Middle East geopolitical tensions might boost safe-haven flows and benefit the gold price. 

Gold price (XAU/USD) trades in negative territory during the early Asian trading hours on Monday. However, the uncertainties surrounding the Federal Reserve’s (Fed) interest rate might lift the yellow metal ahead of the Core Personal Consumption Expenditures Price Index (Core CPI) on Thursday. At press time, gold price is trading at $2,034, losing 0.13% on the day. 

The stronger-than-expected US inflation data in recent weeks has triggered market expectations of delaying the interest rate cuts. Last week, the Fed governor Christopher Waller said that Fed officials are in no rush to implement interest rate cuts. Investors expect that the US may not cut rates until June. That would far surpass previous expectations of March cuts. Traders are now pricing in the first rate cuts starting in June and the Fed’s most recent guidance pointed to three cuts this year.  

The Houthis continue to attack commercial ships in the Red Sea and strengthen their weapons stockpile in Yemen, even though the US has carried out strikes on the group in recent weeks. The rising geopolitical tensions in the Middle East could boost the gold price as it’s perceived as a traditional safe-haven asset. 

Looking ahead, gold traders will monitor the US Gross Domestic Product Annualized for the fourth quarter (Q4), due on Wednesday, and the  Core Personal Consumption Expenditures Price Index (Core PCE) on Thursday. These data could give a clear direction to the gold price. 

XAU/USD

Overview
Today last price 2034.94
Today Daily Change -1.70
Today Daily Change % -0.08
Today daily open 2036.64
 
Trends
Daily SMA20 2024.9
Daily SMA50 2033.29
Daily SMA100 2005.98
Daily SMA200 1966.6
 
Levels
Previous Daily High 2041.39
Previous Daily Low 2016.09
Previous Weekly High 2041.39
Previous Weekly Low 2011
Previous Monthly High 2079.01
Previous Monthly Low 2001.9
Daily Fibonacci 38.2% 2031.73
Daily Fibonacci 61.8% 2025.75
Daily Pivot Point S1 2021.36
Daily Pivot Point S2 2006.07
Daily Pivot Point S3 1996.06
Daily Pivot Point R1 2046.66
Daily Pivot Point R2 2056.67
Daily Pivot Point R3 2071.96

 

 

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