Gold Outlook: As the week kicks off, gold's price (XAU/USD) remains comfortably above $2,100, buoyed by expectations that the Federal Reserve may cut interest rates later this year. All eyes are on the forthcoming US GDP data for Q4, anticipated at a steady 3.2%, which could inject new life into the market. Currently, gold hovers around $2,168, experiencing a slight uptick of 0.15%.
The Fed's decision to hold rates steady for the fifth time in a row, coupled with Chairman Jerome Powell's hints at possible rate cuts in 2024, has heightened gold's appeal, pushing its price upward. Market predictions now see a 72% chance of a June rate cut by the Fed, a jump from 65% before the rate decision.
Quick Take: Following a recent attack in Russia, gold edged slightly higher to above $2,170. The trend looks steady, but we might see some fluctuations between $2,150 and $2,180 short-term. Awaiting more Fed announcements for a clear direction.