Gold XAU/USD forecast are hovering around $2,660 on Wednesday, after recent gains. Investors are taking a break to assess the impact of rising tensions between Iran and Israel. At the same time, attention is turning to important US data and Federal Reserve (Fed) updates that are expected soon.
Geopolitical Tensions and US Data in Focus
Despite ongoing concerns about a conflict between Iran and Israel, markets have calmed down slightly. Investors are hopeful that Iran will avoid a full-scale war, just as it did after similar incidents in the past. On Tuesday, Iran fired hypersonic missiles in response to Israeli military actions. Iranian leaders indicated that they do not plan further strikes unless Israel escalates the situation.
If tensions in the Middle East ease, Gold prices may fall as demand for safe-haven assets declines.
Impact of US ADP Data and Fed Statements on Gold
Alongside geopolitical factors, traders are closely watching upcoming US economic data, particularly the ADP Employment Change report. It’s expected that 120,000 new jobs were added in September, up from 99,000 in August. This data could give hints about the Fed’s next move on interest rates, which in turn will influence Gold prices.
Speeches from Fed officials will also be crucial in shaping market expectations. Raphael Bostic of the Atlanta Fed recently mentioned that further rate cuts might be possible if the job market shows more weakness. Although recent data on US manufacturing and job openings have sent mixed signals, the market currently sees a 37% chance of a 50 basis point rate cut in November.
Gold Price Technical Analysis (XAU/USD) Forecast
Daily Chart Overview
From a technical perspective, the outlook for Gold remains positive. The Relative Strength Index (RSI) is stable near 68, indicating strength. For Gold to continue rising, it needs to close above the $2,670 resistance level. If it breaks this level, the next targets for buyers are the record high of $2,686 and the key $2,700 mark, with resistance expected around $2,730.
On the flip side, if Gold sellers push the price lower, a break below $2,623 could trigger further declines toward $2,600. A dip below this level could lead to a challenge at $2,585, where the 21-day Simple Moving Average (SMA) lies.
Gold’s movements are highly dependent on both geopolitical developments and US economic data, especially Fed signals. As tensions fluctuate and market participants look to upcoming US data for direction, Gold prices could see further volatility.
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