The post XAU/USD gains ground above $2,400, eyes on Fedspeak appeared on BitcoinEthereumNews.com.

Gold price kicks off the new week on a positive note near $2,415.  The softer US inflation data has prompted the Fed’s rate cut expectation, lifting the yellow metal. The hawkish comments from Fed officials might cap the precious metal’s upside.  Gold price (XAU/USD) gathers strength around $2,415 during the early Asian session on Monday. The softer US inflation data in April provides some support to the yellow metal. Meanwhile, the USD Index (DXY), the value of the US dollar measured against a group of six foreign currencies, edges lower to 104.50, losing 0.03% on the day.  Investors will take more cues from the Fed’s Bostic, Barr, Waller, Jefferson, and Mester on Monday. The growing speculation that the US  Federal Reserve (Fed) could lower rates in 2024 provides some support to XAU/USD as the lower rate increases the attractiveness of non-yielding Gold to investors. Both US CPI inflations for April dropped to 0.3% MoM from a 0.4% rise in the previous reading. Both the headline and Core CPI printed lower but in line with market expectations.  On the other hand, the cautious approach from the Fed might cap the upside of the precious metal, as higher interest rates might well reduce overall investment demand for non-yielding gold. Last week, Fed Chair Jerome Powell said that he thinks the US central bank will need more data to gain confidence on whether inflation is steadily falling towards 2%. Also, many Fed officials emphasised the need to hold the rate higher for longer, which boosts the Greenback broadly.      Source: https://www.fxstreet.com/news/gold-price-forecast-xau-usd-gains-ground-above-2-400-eyes-on-fedspeak-202405200050

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Filed under: News - @ May 20, 2024 1:24 am