Gold Price Forecast: XAU/USD Await Powell's Decision


 The price of gold is seen to have tested the price level of $2,052 in the Asian session today. The momentum of the gold price increase since the beginning of this week is following the sentiment of the statement issued by the Fed at the end of last week where the sentiment also gave "bearish" momentum to the USD currency and also American treasury bonds.

Markets now expect the Fed to cut interest rates next year. Investors now see the implementation of interest rate cuts expected to take effect in early March with a probability of 40%.

Data Focus

The sentiment of the Fed at this time is still superior to the gold price demand, but tonight the release of the "US Gross Domestic Product (GDP)" data is able to perform "corrective" and "pullback" movements at the same time lowering the gold market price.

In addition, investors will look forward to the current data value of "Personal Consumption Expenditure (PCE)" scheduled for Thursday and also the speech by Fed chairman Jerome Powell scheduled to take place this Friday. This conference is a monthly event dubbed the "Fed Blackout Period" before the FOMC meeting on December 12-13, 2023.

Technical Analysis

Based on the daily chart, the price of gold is seen to still favor buyers, but the probability of a "corrective" and "pullback" movement tonight is high.

If this happens, the level of $2022, $2012 and the last $1,983 will be the focus price for buyers. However, if the level of $2,052 is successfully passed, gold is seen to be heading towards the price level of $2,070 - $2,080.