Gold price hold gains tight prompted by steady monetary policy from the Fed
Gold price (XAU/USD) holds onto recovery prompted by a steady interest rate decision from the Federal Reserve (Fed). The precious metal aims to generate more gains in hopes that the Fed has concluded its rate-tightening campaign. Federal Reserve chairman Jerome Powell said progress was being made with inflation and whilst another rate hike was not out of the question he sounded less committed to the idea. As a consequence the US Dollar (USD) weakened and XAU/USD got a shot in the arm.
The downside in the yellow metal also remains cushioned due to Middle East conflicts and mixed US data. US private payrolls and Manufacturing PMI for October failed to meet expectations. Going forward, the Gold price and the US Dollar would be impacted by the Nonfarm Payrolls (NFP) for October. Investors would keenly watch for wage growth as it will exhibit a consumer spending outlook. Gold price turns sideways around $1,990 after discovering buying support near $1,970 as investors seek fresh development on Israel-Palestine tensions. The precious metal continues to trade inside the $1,970-2,010 range ahead of the crucial labor market data. The yellow metal aims to recapture the psychological resistance of $2,000 as the broader outlook is bullish due to the upward-sloping 50 and 200-day Exponential Moving Averages (EMAs).