Gold price forecast have shown signs of recovery after a recent decline, hovering around $2,350 early Tuesday. Traders are now focused on upcoming speeches from U.S. Federal Reserve (Fed) officials, hoping to gain new insights into interest rates.
Gold Price Forecast: Anticipating the Fed’s Stance – What’s Next for XAU/USD Buyers?
Two key Fed officials, Governor Michelle Bowman and Cleveland Fed President Loretta Mester, will be speaking at a Bank of Japan event at 04:55 GMT. Their comments are expected to provide clues on future monetary policies and interest rates.
The gold market remains cautious as investors digest the latest U.S. Consumer Price Index (CPI) report from April. If the Fed officials maintain a careful approach toward inflation, demand for the U.S. Dollar could rise. This scenario may keep gold price forecast steady, especially since gold does not provide interest returns.
China’s Real Estate Sector Offers Hope Amid Uncertainty
In addition to Fed signals, gold buyers are closely watching developments in China. Investor confidence has improved slightly due to new measures introduced by Shanghai City to support the country’s struggling real estate sector. While this news has stabilized gold price forecast, the U.S. Dollar’s ongoing weakness also plays a role in keeping gold steady.
Traders are now awaiting the return of U.S. markets after a prolonged weekend to find new opportunities and gauge market sentiment.
Gold Price Technical Analysis: Eyeing Key Resistance Levels
On Monday, gold managed to resist a downward trend, despite breaking out of a rising wedge pattern. This resilience is supported by the 14-day Relative Strength Index (RSI), which is now above 50, signaling potential strength.
For gold prices to continue rising, it is crucial for the price to close above the $2,365 level. This point is the previous wedge support, which now acts as resistance.
Currently, gold is trading near the 21-day Simple Moving Average (SMA) at $2,349. If buyers can push through the $2,365 resistance, there’s potential for the price to climb toward the $2,384 high from May 24, with the next major resistance at $2,400.
On the flip side, if sellers gain control, they need to break below the 50-day SMA at $2,317 to signal a return to the downtrend. Additional support is expected around $2,300, with the possibility of testing the May 3 low of $2,277.
Conclusion
As gold prices hover near critical levels, traders should keep an eye on U.S. Federal Reserve speeches and developments in China’s real estate sector. Overcoming the $2,365 resistance could open doors to higher levels, but the downside risks remain if the market breaks below key support levels.
For regular updates on gold prices, visit Daily Gold Signal, and for more insights on gold trends, check out the daily gold update.
