Gold Price Update: Will the Fed’s Rate Decision Impact Gold’s Trajectory?
Gold prices are currently hovering around $2,650 per troy ounce as investors await the US rate decision later tonight. The market is expecting a 25-basis-point cut, but there is uncertainty about the Fed’s monetary policy for 2025.
Recent retail sales data showing a 0.7% increase in November has sparked discussions that the Fed may slow down its rate cuts. This increase in retail sales could influence the Fed’s approach to monetary easing.
A potential slowdown in rate reductions could be unfavorable for Gold, as lower interest rates make holding non-yielding assets like Gold more attractive. Investors should wait for the Federal Reserve’s statement before making any decisions.
Since the beginning of the year, Gold has gained over 28%, possibly ending 2024 with the highest annual gain since 2010.
Technical Analysis of XAU/USD
On the H4 chart, Gold has consolidated around the 2,675.55 level and is expected to continue its growth towards 2,743.85. The MACD indicator supports a bullish outlook.
On the H1 chart, Gold has completed a correction and is anticipated to rise towards 2,680.00 before potentially declining to 2,658.00. A new growth phase towards 2,743.85 is likely. The Stochastic oscillator indicates upward momentum.
In conclusion, the Fed’s rate decision could have a significant impact on Gold prices. Investors should closely monitor the Fed’s statement to make informed decisions about their investments in Gold.