Today marks the Federal Reserve (Fed) decision day, with the precious metals markets widely anticipating the US central bank to maintain unchanged interest rates, as noted by analysts at TDS. Following the softer-than-expected US Consumer Price Index (CPI) data, analysts speculate that Fed Chairman Jerome Powell might strike a more optimistic tone in his remarks later today, which could bode well for Gold.
“We expect Powell to express optimism given the recent data, and we anticipate the ‘dot plot’ to indicate only two rate cuts in 2024, down from the previous forecast of three. This expectation is already priced into the precious metals market, especially as Fed pricing remains more restrained than the central bank’s own guidance,” analysts at TDS commented.
They further noted, “With the outlook heavily dependent on incoming data, Gold (XAU/USD) investors are likely to monitor any signs of economic weakening before major market players re-engage. The latest CPI figures, falling below expectations, have provided a lift to the yellow metal.”
Looking ahead, TDS suggests that Gold could attract marginal buying interest above the $2,333 per ounce level and maintains resilience against selling pressure, with significant support seen around the $2,203 per ounce threshold.
