- Gold forecast shows a slight bearish bias amid renewed investor confidence and optimism around the US shutdown.
- The non-yielding gold remains supported by expectations of Fed easing and US economic worries.
- Traders await commentary from FOMC officials for further impetus regarding Fed easing.
Gold forecast shows a short-term bearish pullback, as it trades near $4,115 on Wednesday, snapping its 3-week rally amid a strengthened greenback. The expectations of the US government reopening have lifted the risk-on mood, weighing on the yellow metal.
–Are you interested in learning more about XRP price prediction? Check our detailed guide-
Markets are pricing in a 68% probability of a 25 bps December cut. However, some market participants are expecting a 50 bps cut instead. The Fed’s dovish expectations have suppressed the yields, supporting non-yielding assets such as gold.
However, the US dollar faces a modest recovery due to the optimism around the end of the federal shutdown that boosted investor confidence and appetite for risk assets. This risk-on tone caps gold’s further upside in the near term.
Markets maintain a cautious stance over speculations that the shutdown could have weakened the US economy, pressuring the Fed to deliver a December rate cut. Recent data from Revelio Labs revealed a loss of more than 9,000 private jobs in October. Moreover, a decline of 22,000 government payrolls and a rise in unemployment reignite the Fed’s dovish stance.
While today’s lows reflect reduced safe-haven demand for gold and a limited dollar strength, the ongoing US economic decline and Fed cuts support gold in the medium term.
Gold Daily Key Events
The significant events in the day include:
- FOMC Member Williams Speaks
- FOMC Member Paulson Speaks
- FOMC Member Bostic Speaks
- FOMC Member Miran Speaks
- FOMC Member Waller Speaks
On Wednesday, traders look ahead to speeches from FOMC officials Williams, Paulson, Miran, Waller, and Bostic for insights into further rate-cut bets. However, major event for the week remains US CPI due tomorrow.
Gold Technical Forecast: Consolidating Pullback Near $4,115
Gold’s 4-hour chart shows a consolidation above $4,100 after breaking its 3-week rally. The 20-, 50- and 100-period MAs remain below the price, suggesting a firm broader trend.
–Are you interested to learn more about low spread forex brokers? Check our detailed guide-
The RSI holds near 60.0, indicating the momentum eases without a clear sign of trend reversal. If buyers break above $4,155, they could aim for $4,190 and $4,275, continuing the further uptrend. On the contrary, a failure to hold above $4,100 could invite deeper pullbacks.
Support Levels
Resistance Levels
Looking to trade forex now? Invest at eToro!
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.