Gold Price Forecast: Fed Policy Decisions and US Labor Data to Drive XAU/USD Action
Gold faced downward pressure this week, dropping below $2,400 as demand outlook worsened. The upcoming Federal Reserve (Fed) policy announcements and US labor market data are key factors that could determine the next move for Gold prices.
Key Highlights:
- Gold struggles as demand outlook dims
- China’s rate cuts weigh on XAU/USD
- US data impacts Gold’s direction
Gold saw a technical correction on Tuesday after stabilizing near $2,400, thanks to mixed US data. However, renewed bearish pressure emerged on Thursday following China’s policy easing measures and upbeat US economic data. The focus now shifts to the Fed’s policy decisions and high-tier US data releases.
What to Watch Next:
- NBS Manufacturing PMI and Non-Manufacturing PMI data from China
- ADP Employment Change and Fed policy decisions
- ISM Manufacturing PMI report and Nonfarm Payrolls (NFP)
The Fed is expected to keep rates unchanged, but Powell’s remarks could impact the USD and Gold prices. A dovish stance could support Gold, while a more hawkish outlook could weigh on XAU/USD. US data releases, especially the NFP report, will also be closely watched for further direction.
Technical Analysis:
The RSI indicator suggests potential for further downside in Gold, with key support at $2,360. A break below could trigger more selling pressure towards $2,330-$2,325. On the upside, resistance is seen at $2,390-$2,400, with $2,430 and $2,460 as potential targets if XAU/USD holds above the current levels.
Analysis Breakdown:
In summary, Gold prices are facing pressure from a gloomy demand outlook and external factors such as China’s rate cuts and US economic data. The upcoming Fed policy decisions and high-tier US data releases will be crucial in determining the next move for XAU/USD. Investors should pay close attention to Powell’s remarks and key economic indicators to gauge the direction of Gold prices. Technical levels indicate potential support and resistance zones for traders to watch. Overall, the outlook for Gold remains uncertain, with various factors at play that could drive significant price movements in the near term.