XAUUSD: Gold Price Forecast!

XAU/USD holds steady above 1,920 level, not out of the woods yet

The Federal Reserve (Fed) has indicated that interest rates may still need to increase by up to 50 basis points by the end of this year. Furthermore, Fed Chair Jerome Powell, in his recent two-day testimony before Congress, stated that the US central bank does not foresee any rate cuts in the near future. The Fed will wait until it is confident that inflation is trending towards the 2% target before making any changes. As a result, the focus will be on the release of the US Personal Consumption Expenditures (PCE) Price Index, which is the Fed's preferred measure of inflation, on Friday. This release could impact expectations regarding the next policy decision.

Trade ativo:

- According to the statements of the member of the European Central Committee, Martins Casax, today, Tuesday, as follows:

- The markets bet on a rate cut early next year is wrong.

- I believe that the European Central Bank will raise interest rates again after next July due to the high inflation.

- Cooling economic growth is an unlikely scenario for dealing with high inflation.

- There are fears and risks of sustaining high inflation.

- I do not think that the European Central Bank will finish raising interest rates after the next July decision.

Trade ativo:

Lagarde: Inflation in the euro area is too high and is set to remain so for too long. But the nature of the challenge in the euro area is changing. Inflation is more persistent, caused by the fact that it is working its way through the economy in phases.

Comentário:

Today, the US dollar maintained its gains against other major currencies, amid great tension in Russia and dealers' anticipation of US data that may determine the timing of raising interest rates.

Trade ativo:

Russian President Vladimir Putin gave a televised address Monday night, saying he had intentionally let the Wagner mercenary group's brief weekend mutiny go on as long as it avoided bloodshed.
This appears to be an attempt to draw a line in the face of an event that calls into question authority, but it is unlikely that these geopolitical tensions will dissipate quickly, and thus risk appetite. will be under pressure for a while.
Aside from events in Russia, sentiment remains pressured by worries about inflation and the possibility that central banks, and the Federal Reserve in particular, will keep interest rates 'higher for a while'. longer'.