Where is the Gold Price Heading Next?


XAU/USD hovered around the usual $2,300 level throughout yesterday amid rising US Treasury yields and a strengthening USD.

Key economic data in the United States remains limited and investors look forward to Thursday's jobless claims data and Friday's University of Michigan (UoM) Consumer Sentiment survey.

Meanwhile, the price of gold traded at $2,310.18 which is up by 0.07% since it opened at the beginning of the Asian trading session.

Throughout the week, market participants remained focused on the speech of Federal Reserve (Fed) officials amid growing speculation that the US central bank will lower interest rates.

Lower interest rates will usually give the gold metal an advantage to continue its price surge above $2,300.

Boston Fed President Susan Collins said she expected the data to move slightly harder to bring inflation to 2% and added that there was a risk of cutting interest rates too quickly.

He said again, the current policy is still in a better position and limited in position.

The latest US jobs report was still bleaker than expected and reignited fears that the economy will suffer and will prompt faster-than-expected rate cuts.

Nevertheless, physical demand for the yellow metal remains steady in the market based on reports of China's central bank holding stocks. Its gold inventory increased by 1.9 metric tons for 18 consecutive months expanding its reserves.