Gold Price Forecast: XAU/USD stages a modest recovery above $1,980 after Fed rate pause


  • Gold price attracts some buyers after the Federal Open Market Committee (FOMC) rate decision.
  • FOMC maintained the monetary policy unchanged at 5.5% at its November meeting.
  • Gold traders will focus on the weekly Initial Jobless Claims ahead of Friday's Nonfarm Payrolls (NFP).

Gold price (XAU/USD) stages a modest recovery during the early Asian session on Thursday. The rebound of precious metal is bolstered by a decline in the US Treasury bond yields following the the Federal Open Market Committee (FOMC) policy meeting. As of writing, gold price is trading higher on the day at $1,985.

Meanwhile, the US Dollar Index (DXY), the value of the USD relative to a basket of global currencies, edges lower to 106.67, retracing from the weekly highs of 107.10. The US Treasury bond yields correct lower, with the 10-year dropping to 4.73% and the 2-year yield falling below 5.00%.

The FOMC maintained the monetary policy unchanged at 5.5% at its November meeting late Wednesday. Federal Reserve (Fed) Chairman Jerome Powell stated that the rise in long-end yields needs to be persistent and driven by higher term premiums to influence monetary policy while mentioning that the current monetary policy is already restrictive. The markets believe that the rate hike cycle is already over. This, in turn, exerts some selling pressure on the US Dollar (USD). According to the CME FedWatch Tool, the odds of a rate hike for a December meeting is around 22%.

On the other hand, the weaker Chinese data might cap the gold’s upside as China is the world's largest gold producer and consumer. On Wednesday, China's Caixin Manufacturing PMI dropped to 49.5 in October from September’s expansion of 50.6, worse than the expectation of a 50.8 rise.

Moving on, gold traders will take monitor the US employment data, including the weekly Initial Jobless Claims. The figures are expected to rise by 210K for the week ending October 27. The attention will shift to Friday's Nonfarm Payrolls (NFP), which is expected to add 180K jobs in October. These events could give a clear direction to the gold price.

 

XAU/USD

Overview
Today last price 1984.02
Today Daily Change 0.27
Today Daily Change % 0.01
Today daily open 1983.75
 
Trends
Daily SMA20 1925.58
Daily SMA50 1916.69
Daily SMA100 1924.82
Daily SMA200 1933.23
 
Levels
Previous Daily High 2007.98
Previous Daily Low 1978.85
Previous Weekly High 2009.49
Previous Weekly Low 1953.61
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 1989.98
Daily Fibonacci 61.8% 1996.85
Daily Pivot Point S1 1972.41
Daily Pivot Point S2 1961.06
Daily Pivot Point S3 1943.28
Daily Pivot Point R1 2001.54
Daily Pivot Point R2 2019.32
Daily Pivot Point R3 2030.67

 

 

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

EUR/USD remains pressured below 1.0800 on renewed USD strength

EUR/USD remains pressured below 1.0800 on renewed USD strength

EUR/USD stays under pressure and declines toward 1.0750 following Thursday's recovery. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Federal Reserve's monetary policy announcements.

EUR/USD News
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD trades in negative territory at around 1.2950 in the second half of the day on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders comments from central bankers.

GBP/USD News
Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold trades below $2,700 in the early American session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.

Gold News
Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures