Gold Price Forecast: XAU/USD Holds Steady Above $2,350 Amid Market Caution

On Wednesday, the price of gold stayed around $2,380 per ounce, which is very close to its highest value. This is because traders are being careful before seeing how Israel will respond to Iran’s air strike that happened on Saturday. A report from Reuters said that Israel’s war cabinet, which was supposed to meet on Tuesday to decide what to do about Iran’s attack, postponed their meeting until Wednesday.

Additionally, according to information from The Jerusalem Post, it’s been said that Israel has finalized its plans for a counterattack against Iran. Also, Jake Sullivan, the US National Security Advisor, announced on Tuesday night that new sanctions will be imposed on Iran soon. These sanctions will target Iran directly, as well as entities that support the Islamic Revolutionary Guard Corps and Iran’s Defense Ministry.

At the same time, Jerome Powell, who is the boss of the Federal Reserve (Fed), spoke at an event in Washington on Tuesday. He tried to make people not expect that interest rates will go down soon. Powell said that the US economy is doing pretty well and that recent information shows that inflation hasn’t gone up much this year. He also said that it will take more time than we thought to reach the goal of 2% inflation. When interest rates might go up, things like gold, which don’t pay interest, might not seem as good to invest in.
The CME FedWatch Tool says there’s now a higher chance, about 84.8%, that interest rates won’t change in the June meeting. This is up from 78.7% on Monday. Investors are paying close attention to what Federal Reserve officials say this week. Also, they’re waiting to see Thursday’s report on US Initial Jobless Claims to get a better idea of where monetary policy might be headed.

XAU/USD