Gold Price Forecast: Fed's rate decision to drive XAU/USD's next move
Gold prices slipped early Monday after Friday's rebound as hot core CPI, rising yields and 87% Fed hike odds kept the XAUUSD outlook bearish.
Gold edges lower below $4,350 on imminent Fed rate hike
Spain ponders whether it should get its Gold out of the United States
Higher US interest rates complicate the gold price forecast, but UBS still projects a recovery to $4,600 by December. UBS's $5,400 gold price forecast for September 2027 implies a gain of around 24% from Friday's close, even though the bank expects two Federal Reserve rate increases this year.
Gold fell 1.8% last week and is now down for a third consecutive week, suggesting that momentum continues to fade following the powerful surge we saw in August. On Friday, the precious metal initially fell in reaction to the US CPI data but then rallied sharply from its lows immediately afterwards in a classic “sell the news” reaction, before fading into the close.
As the trading week comes to an end, one of the most relevant developments has been the neutral behavior displayed by gold in the short term. Over the last four trading sessions, price action has registered only a modest move of around -0.36%, a dynamic that highlights the recent lack of momentum around the metal.
Gold tightens between key support and resistance as a breakout above $4,443 could signal a second bullish leg.
United States CFTC Gold NC Net Positions rose from previous $228.1K to $232K
Precious metals are moving higher as traders react to the sell-off in the oil markets.
Gold price dodges CPI shock as US yields hand bulls lifeline
The outlook for precious metals hinges on next week's central bank decisions.