Gold Price Forecast: XAU/USD posts modest gains above the mid-$2,100s amid geopolitical tension risks


  • Gold price posts modest gains near $2,168 in Monday’s early Asian session. 
  • The FOMC maintained its outlook for three quarter-point rate cuts this year, which benefit the gold price. 
  • The rising geopolitical tension in Ukraine might boost safe-haven assets like gold prices. 

Gold price (XAU/USD) holds above the mid-$2,100s during the early Asian trading hours on Monday. The recovery of the yellow metal is bolstered by the higher possibility that the US Federal Reserve (Fed) could start cutting rates later this year. Traders await the US Gross Domestic Product (GDP) numbers for the fourth quarter (Q4) for fresh impetus, which is estimated to remain steady at 3.2%. Gold price currently trades around $2,168, gaining 0.15% on the day. 

Last week, the Fed left its benchmark interest rate unchanged for the fifth consecutive meeting at its 5.25% to 5.50% range after its March meeting. The Fed Chairman Jerome Powell hinted that the central bank was on course for three interest rate cuts in 2024, which fuel more investor demand for the precious metal and lift the gold price. Investors have priced in a 72% odds that the Fed will start cutting rates in the June meeting, up from 65% before the rate decision, according to the CME FedWatch Tool. 

Furthermore, the escalating geopolitical tension in Ukraine might boost the safe-haven flows, benefiting the gold price. On Sunday, an underground gas storage facility in Ukraine was attacked in the latest round of Russian missile attacks on power facilities. Ukraine President Volodymyr Zelenskiy said attempts to restore power supply were underway in several locations, with the most challenging situation in Kharkiv, Ukraine's second-largest city, per Reuters. 

Looking ahead, gold traders will closely watch the US GDP growth numbers Annualized for Q4. If the report shows stronger-than-expected data, this could provide some support to the Greenback and weigh on the US Dollar-denominated Gold. On Friday, the markets will be closed for Good Friday.
 

XAU/USD

Overview
Today last price 2165.02
Today Daily Change -0.39
Today Daily Change % -0.02
Today daily open 2165.41
 
Trends
Daily SMA20 2131.96
Daily SMA50 2067.54
Daily SMA100 2042.38
Daily SMA200 1984.11
 
Levels
Previous Daily High 2186.16
Previous Daily Low 2157.17
Previous Weekly High 2223.22
Previous Weekly Low 2146.16
Previous Monthly High 2065.49
Previous Monthly Low 1984.26
Daily Fibonacci 38.2% 2168.24
Daily Fibonacci 61.8% 2175.09
Daily Pivot Point S1 2153
Daily Pivot Point S2 2140.59
Daily Pivot Point S3 2124.01
Daily Pivot Point R1 2181.99
Daily Pivot Point R2 2198.57
Daily Pivot Point R3 2210.98

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD holds higher ground above 0.6650 on China optimism

AUD/USD holds higher ground above 0.6650 on China optimism

AUD/USD is flirting with session highs above 0.6650 even after Australian Retail Sales data missed estimates with 0.1% MoM in April. The pair draws support from broad US Dollar softness and China's property market measures. Focus shifts to Fedspeak. 

AUD/USD News

USD/JPY falls from 157.00 as US Dollar meets fresh supply

USD/JPY falls from 157.00 as US Dollar meets fresh supply

USD/JPY is reversing from near 157.00 in Asian trading on Tuesday, undermined by a renewed US Dollar selling wave, as risk sentiment receives a fresh boost on China optimism. Investors await Fedspeak and key data to determine the pace of rate cuts from central banks moving forward.

USD/JPY News

Gold price trades with mild gains, investors await US key data

Gold price trades with mild gains, investors await US key data

Gold price edges higher on Tuesday after bouncing off two-week lows of $2,325. The uptick of yellow metal is bolstered by the softer US Dollar and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. 

Gold News

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum gained nearly 3% on Monday as investors exhibited high bullish sentiment. Michael Saylor also commented on the recent spot ETH ETF approval by the Securities & Exchange Commission.

Read more

Fed policymakers on the radar, as US PCE inflation looms

Fed policymakers on the radar, as US PCE inflation looms

Federal Reserve policymakers are set to make their scheduled appearances on Tuesday, as full markets return, anticipating the release of the high-impact US PCE inflation due later this week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures