Forecasting Gold Prices: XAU/USD Sees Softened Trading Below $2,350 Amid Higher-Than-Anticipated US Inflation Figures

On Monday, during the early Asian session, the price of gold, represented by XAU/USD, was trading slightly lower around $2,335. This happened because recent data from the US showed that inflation (the rise in prices) is staying high. This made investors unsure whether the US Federal Reserve, which controls interest rates, will lower rates soon.

This Wednesday, the Federal Reserve’s decision on interest rates will be watched closely by the market.

At the same time, the US Dollar Index (DXY), which measures how much the US dollar is worth compared to other currencies, falls to 106.00. Also, the yields on US Treasury bonds, which are like loans to the government, decrease slightly. Specifically, the yield on the 10-year bond drops to 4.667%.

On Friday, the main and basic Personal Consumption Expenditures (PCE) Price Index for March matched what people thought it would, going up by 0.3% compared to the previous month. The yearly main inflation was 2.7% in March, higher than the 2.5% it was in February and more than the expected 2.6%. The basic PCE inflation went up by 2.8% compared to the previous year, which was higher than the expected 2.6%.

On Saturday, Hamas said they were looking at a new suggestion from Israel to stop fighting in Gaza.Egypt worked harder to make a deal between Israel and Hamas to stop the fighting and prevent Israel from sending its military into the southern Gaza city of Rafah.People who trade gold will pay attention to what’s happening in the Middle East because if tensions there increase, it could make traditional safe investments like gold more valuable.

XAU/USD