Gold Price News and Forecast: XAU/USD bears keep reins below $1,900 amid US dollar strength

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD stalls within bull flag at weekly resistance

The price of gold is trading at $1,867.52, down some 0.5% on the day having travelled between $1,860.82 and $1,884.33.

Holiday-thin markets on a shortened week are making for unusual price behaviour across the spectrum of instruments, not least in the precious metals arena.

However, the US dollar is perky within its corrective phase within the fresh bearish cycle and despite the passage of a new $900 billion stimulus package.

Following weeks of negotiations, Congress overwhelmingly approved billions of dollars for American households and businesses that have been hurt by the pandemic.

Gold Price Analysis: XAU/USD bears keep reins below $1,900 amid US dollar strength

Gold prices hold lower ground near $1,860 amid the early Wednesday morning in Asia. The yellow metal dropped the most since December 09 amid broad US dollar strength. While the greenback benefited from the passage of the US coronavirus (COVID-19) aid package and broad risk-off mood, sentiment remains downbeat as Brexit deadlock prevails while markets worry from the fresh covid variant.

Although major market chatters blame risk-off for the latest surge in the US dollar index (DXY), other reasons also contribute to the greenback’s strength. Firstly, the passage of the US covid aid package and government funding with nearly $2.3 trillion amount in total suggest that the world’s largest economy will have a good start to 2021. Secondly, hopes that America will be in better shape under Joe Biden’s leadership also back the greenback. Additionally, other developed economies like Europe and the UK are jostling with Brexit whereas China has less acceptance in the West, which in turn direct market players towards the USD.

AUD/USD clinches five-week highs; focus is on 0.7100

AUD/USD has pushed harder on Wednesday, further extending its recent break above the key 0.7000 yardstick. Indeed, the renewed downside pressure on the Greenback lent legs to the Aussie, opening the door to a potential revisit to the 0,.7100 zone.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold hovers around $4,050 after Fed's announcement

Gold ticks higher after the Federal Open Market Committee kept the Fed funds rate unchanged at 4%. XAU/USD advanced as Chair Kevin Warsh explained that hikes are working, cooling down hopes for an aggressive 50 bps hike in December.

Bitcoin and Gold Forecast: BTC bulls hold $80K as XAU defends $4,000 ahead of Fed

Bitcoin (BTC) ticks lower near $80,000 on Wednesday, while Gold (XAU/USD) holds above $4,000. Both assets reflect the broader risk-off sentiment as focus remains on the Federal Reserve’s (Fed) interest rate decision later in the day.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.