Gold prices pulled back slightly on Friday but posted the second weekly gain in a row as expectations that the Federal Reserve will pause rate increases continued to take a toll on the US dollar.
At the time of writing, the spot price, XAU/USD, is trading at the $1,960/oz area, down 0.23% on the day but posting a 0.65% weekly advance.
The greenback is torn between mounting expectations that the Fed will maintain the Fed funds target range steady at 5.00%-5.25% at next week's meeting but will raise rates by 25 bps at the next meeting. According to the CME FedWatch Tool, the probability of the Fed hiking rates in July is above 50% following the Reserve Bank of Australia and the Bank of Canada's unexpected increases announced this week.
But before the Fed announces its verdict on Wednesday, the US will release the May consumer price index (CPI) figures on Tuesday. Investors expect the annual inflation rate to decrease to 4.2% while the core rate is increasing to 5.6%. Both events have the potential to trigger USD swings. 
From a technical perspective, the XAU/USD pair maintains a neutral to slightly bullish short-term bias according to indicators on the daily chart, while the price is closing just above the 20-day simple moving average (SMA). On the weekly chart, the outlook remains bullish, with the 20-week SMA acting as critical support in the $1,940 area. A loss of this level could deteriorate the medium-term outlook for the yellow metal.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold Posts Second Weekly Gain Ahead of Fed's Verdict
Published 06/09/2023, 04:58 PM
Updated 07/09/2023, 06:32 AM
Gold Posts Second Weekly Gain Ahead of Fed's Verdict
Latest comments
we hope so
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.