Impact of Federal Reserve’s Policy on Gold Prices
The Federal Reserve’s recent announcement signaling a halt on rate hikes has marginally alleviated pressure on gold, traditionally a non-yielding asset. This decision contributed to the dollar’s depreciation to its lowest in three weeks, indirectly supporting gold prices.
Global Market Sentiment and Gold’s Safe-Haven Status
The prevailing risk-on sentiment in global equity markets further challenges gold’s appeal as a safe haven. As investors gravitate towards higher-risk assets, gold’s potential for significant gains is capped.
This environment, combined with the Fed’s tempered stance on monetary policy, suggests that gold may persist in its consolidation phase until more definitive economic signals or policy changes emerge.
Key Economic Indicators to Watch
The upcoming release of several critical US economic indicators will likely sway market sentiment and impact gold prices. Forecasts suggest the addition of 238,000 jobs in April, with the Unemployment Rate expected to remain stable at 3.8%.
Additionally, upcoming data from the Final Services PMI and ISM Services PMI will offer deeper insights into the economic conditions influencing gold.
 Daily Forecast: Awaits NFP, XAU Holds Near $2,300 Amid Rate Pause){kind=link}