XAU/USD Gold Price Forecast: FOMC New Price Driver


 Geopolitical conflicts in the Middle East and China's economic growth are intensifying. It also has a high impact on the "safe heaven-asset" market, especially on the US Dollar and the gold market.

The sharp rise in gold prices has been driven by geopolitical factors while the fall in gold prices has been driven by massive buying of "US Treasury Bond Yield" following the new interest rate change before the FOMC early this morning.

The Fed is expected to keep interest rates on hold at today's FOMC meeting, but the main focus at the meeting is a new indication of the timing of interest rate cuts that will be implemented this year.

The release of Nonfarm Payrolls (NFP) data on Friday is also expected to help provide an indication of the direction of monetary policy in the country.

The first jobs data that was reported yesterday, JOLT'S, was seen to prevent the Fed from implementing aggressive interest rate cuts as had been heralded in market sentiment last week and earlier this week.

Daily Chart Technical Analysis

The gold market is currently awaiting new indications at the FOMC meeting early this morning to continue the gains.

However, the price level of $2,040-$2,050 still remains the main level to clarify the continuation of the price increase. If the price of that level is successfully broken, $2,060 will be the next stop.

However, if the FOMC does not side with gold investors, the gold market will trade low until the level of $2,030 before the price of $2,017 is reached. And it was able to further push the price of gold lower to the $2,000 level again.

Any "Hawkish" statement at the FOMC meeting will be able to provide strong support to the American Dollar and a big fall in the gold market.