XAUUSD forecast: Fed Beige Book Supports Gold Prices. Building bearish deviation, XAUUSD under $2000. Focus on today: Jobless claims statistics and Fed speakers

XAUUSD FUNDAMENTAL FRAMEWORK

This morning on Thursday, gold prices are upward due to a lower US currency. Markets responded to the Fed Beige Book despite harsh remarks from Fed’s Williams. Who noted the difficult task of bringing down inflation in addition to the robust job market in the US.

The Fed Beige Book is a study that is published eight times a year. Which contains information on the state of the economy in different parts of the US from bank and branch directors. The figures from Wednesday showed a dwindling US economy with lowered prices. As well as more restrictive credit availability. Recessionary worries have gained ground, which could be contributing to the safe-haven attractiveness of gold.

This morning on Thursday, gold prices are upward due to a lower US currency. Markets responded to the Fed Beige Book despite harsh remarks from Fed’s Williams. Who noted the difficult task of bringing down inflation in addition to the robust job market in the US.

Investors Mull US Fed’s future rate cycle policy

The study would suggest that the Federal Reserve should stop raising interest rates after it meets in May. But money market positioning indicates that June’s rate rise is still widely anticipated.

Consequently, with both the 10- and 2-year US Treasury yields down. The US real yields have decreased on the theory that interest rates may have already peaked. The ownership of gold has a lower opportunity cost, which increases its allure to investors.

The jobless claim numbers that will be released today (see the economic schedule under). It is anticipated to be about in line with the data from the week before. From the standpoint of market volatility, if this happens,

We don’t see much of an impact though later Fed remarks might ignite the markets to react. A further extension of the Fed’s speakers’ strong rhetoric from this week might strengthen the dollar and exposes gold to negative pressure.

Economic Activity Schedule

Key Technical levels

Resistance levels:

• 2050.00 – 2080.00
• 2032.13
• 2009.75
• 2000.00

Support levels:

• 1969.34
• 1950.00

According to CME Group’s flash statistics for the gold futures markets, on Wednesday, traders cut their open interest holdings by about 8K contracts. Instead, volume reversed two consecutive daily pullbacks and increased by over 40.8K contracts.