XAU/USD at Two-week high ahead of US Fed Rate Meeting

XAU/USD Price Forecast, 19 September 2023: Spot Gold (XAU/USD) prices hit a two-week high on Tuesday as the U.S. dollar eased from a six-month peak ahead of the start of the Federal Reserve’s policy meeting later in the day, with markets braced for a new set of economic forecasts from the central bank.

Spot gold (XAU/USD) was up 0.1% at $1,934.40 per ounce after hitting its highest since Sept. 5 earlier in the session. U.S. gold futures (XAU/USD) gained 0.2% to $1,957.

“Any higher interest rate expectations from the Fed than were previously bargained for among investors could have the effect of pushing down the gold price,” said Edward Gardner, commodities economist at Capital Economics.

Faster growth, cooler inflation, and a resilient job market have set the stage for updated forecasts from Fed officials likely to reflect their growing faith in prospects for an economic soft-landing while keeping one more rate hike on the table.

The U.S. dollar DXY hovered below last week’s six-month high, making gold less expensive for overseas buyers, with key central bank policy decisions also due in Britain and Japan this week.

“Fed Chair Powell’s speech is likely to highlight that inflation risks have not gone away but they are in a wait-and-see mode for inflation,” said Michael Langford, chief investment officer at Scorpion Minerals.

Non-interest-bearing gold could see its appeal dim if the Fed signals further rate rises to control inflation.

“There is scope for the gold price to fall further this year as investor demand for gold as a hedge against economic uncertainty and high inflation environment actually unwind a little bit,” Capital Economics’ Gardner said.

Holdings of SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, were near eight-month lows last week.

Spot silver (XAG/USD) rose 0.4% to $23.32 per ounce.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

2 thoughts on “XAU/USD at Two-week high ahead of US Fed Rate Meeting”

  1. एफएक्सस्ट्रीट फोरकास्ट पोल के अनुसार, अधिकांश विशेषज्ञों का अनुमान है कि सोने की कीमतें बढ़ेंगी। आगामी सप्ताह के लिए औसत कीमत $1,935 होने का अनुमान है, जबकि एक महीने के लिए औसत कीमत $1,957 तक पहुंचने की उम्मीद है। एक तिमाही के लिए औसत कीमत $1,975 होने का अनुमान है। हालाँकि, कुछ विशेषज्ञों का अनुमान है कि सोना तीन महीनों में 1,900 डॉलर से नीचे कारोबार करेगा।

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