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Gold price is aiming to deliver more gains as the Fed surprisingly turns dovish

Gold price (XAU/USD) extended its recovery on Thursday as dovish guidance from the Federal Reserve (Fed) turned its fundamentals supportive, potentially for the long term. The precious metal is expected to add more gains as new projections from the Fed endorse more rate cuts than previously estimated, due to significant progress in inflation declining towards 2%, a stable job market, and reduced inflation projections. Despite rate cut projections and lower inflation guidance, Fed Chair Jerome Powell didn’t announce victory over inflation.

However, a ‘soft landing’ by the Fed is widely anticipated as it is expected to achieve price stability without impacting the labor market and triggering a recession. Gold price traded near a weekly high around $2,040 after recovering from the 50-day Exponential Moving Average (EMA). The precious metal is expected to extend recovery to near the crucial resistance of $2,050. Major resistances for the Gold price are $2,100 and $2,150 respectively. The Relative Strength Index (RSI) (14) has rebounded to near 60.00. If the RSI (14) manages to climb above 60.00, Gold bulls will strengthen further.