Gold price forecast steadies near its record high in the early European session on Wednesday, as market participants await the Federal Reserve’s (Fed) policy update. The Fed is expected to maintain its current federal funds rate between 4.25% and 4.50%, while investors focus on the accompanying policy statement and economic projections, including the dot plot. Additionally, Fed Chair Jerome Powell’s comments during the post-meeting press conference will be crucial for clues about the central bank’s future rate path. These factors are anticipated to influence the US Dollar (USD) and, in turn, the non-yielding yellow metal.
Leading up to this critical central bank event, the US Dollar (USD) recovers modestly, breaking a three-day losing streak and limiting gold’s upward momentum. Despite this, the outlook for gold remains optimistic as concerns persist over the potential economic slowdown due to geopolitical risks and uncertainties related to US trade policies. The likelihood of multiple rate cuts by the Fed this year continues to support gold’s appeal as a safe-haven asset.
Market Movers: Gold Price Maintains Bullish Tone Ahead of Fed Decision
- Gold price forecast reaches a fresh record high near $3,039 amid rising Middle East tensions and uncertainties surrounding US trade policies.
- Israeli airstrikes on Hamas targets in Gaza result in over 400 casualties, further escalating geopolitical instability.
- US President Donald Trump’s tariff threats, set to take effect on April 2, add to fears of a global trade war.
- Speculation that the Fed may lower borrowing costs by 25 basis points at its June, July, and October meetings boosts gold’s safe-haven appeal.
- The US Dollar (USD) shows a slight recovery, rebounding from a five-month low ahead of the Fed’s decision.
Technical Insights: Will Gold’s Uptrend Continue?
The gold price remains above the psychological $3,000 mark, suggesting a strong bullish trend. The daily Relative Strength Index (RSI) remains above 70, indicating overbought conditions. Any short-term pullback toward the $3,005–3,000 area could offer a buying opportunity. Should this level break, further support lies near $2,980–2,978, with extended declines potentially reaching $2,930 or $2,900.
Conclusion: Outlook for Gold Prices
Gold’s bullish bias persists as market participants assess the Fed’s policy stance and potential rate cuts. While the USD’s short-term recovery could limit gains, ongoing geopolitical tensions and economic uncertainties may continue to support gold demand.
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