Gold Price News and Forecast: XAU/USD picks up a safe-haven bid in a correction of Friday's sell-off

FXStreet Team FXStreet

Gold firms in proximity of the $1,600s, correcting a heavily long squeeze

Gold is consolidating in a bullish correction of Friday's sell-off, up some 0.6% at the time of writing having travelled from a low of $1,575.63 to a high of $1,610.99 on the day so far. Friday's sentiment surrounding the prospects of a coordinated effort of central bankers coming to the rescue set-off a stamped in profit-taking triggering sell-stops, resulting in the biggest daily drop in the precious metal in seven years. Gold plummeted over 5% on the day following remarks from Federal Reserve's Chair Jerome Powell.

Gold rebounds but more pain than gains likely

Gold and silver have both rebounded today, along with equity markets. But after last week’s big falls, more pain could be on the way for gold bulls than gains this week. As we reported the possibility earlier last week, safe-haven gold continued to head lower despite widespread concerns over the outbreak of coronavirus. However, I didn’t think the metal would fall as much as it did on Friday. The fact that it did, means I must revise my expectations. So, while I still remain bullish on gold in the long term, I now think prices may go on to correct themselves for a while before starting to push higher again.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally towards 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs around 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold retakes $4,100 as Fed decision hit the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts of a rate hike in September. XAU/USD peaks above $4,100.

Bitcoin slips below support, Ethereum and XRP flash bearish signals

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after a mild correction earlier this week. BTC slips below a key support zone, and ETH is testing a key resistance zone. Meanwhile, XRP is drifting toward the psychologically important $1.00 support level.

Bitcoin muted as markets fret over Fed, crypto bill

There are two main drivers for crypto this week, keeping Bitcoin trapped within its $58,000-$65,000 summer consolidation range. The cautious tone is being set by the Fed's policy decision scheduled later on Wednesday, a key catalyst for risk assets.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.