Gold price lower as dismal interest rate forecast shifts.
On Wednesday, the gold price (XAUUSD) fell by roughly a quarter of a percent to $2,410. As interest rate expectations shifted in the United States and around the world.
Fed policymakers are hesitant to cut interest rates until greater success has been achieved in combating inflation.
Recent remarks by US Federal Reserve (Fed) members reaffirmed the phrase. That insufficient progress had been made in getting inflation down to the Fed’s The aim is 2.0%. Which would justify decreasing interest rates.
Their views weighed on the gold price, which, as a non-yielding asset, tends to underperform. When interest rates are high due to the increased opportunity cost of keeping gold.
Their sentiments are shared in other regions of the world, putting more pressure on the gold price, which is sensitive to interest rates.
Gold price declines ahead of Fed Minutes
The XAUUSD market may be further impacted. When the Fed issues the FOMC Minutes from its most recent policy meeting on Wednesday at 18:00 GMT.
If the meeting minutes reflect a shift toward a more hawkish posture among officials, gold is projected to fall further.
The latest Reserve Bank of Australia (RBA) meeting minutes indicated. That officials addressed the potential of hiking interest rates, a significant shift from previous meetings.
Technical Analysis: Gold Price Edges Lower to trendline support.
The XAUUSD is edging lower towards support from the green trendline, which reflects the short-term rally that began in early May.
On Monday, the pair created a Shooting Star Japanese candlestick pattern (a shaded rectangle on the chart), which was followed by a bearish close the next day, offering further confirmation. The pattern indicates short-term weakness.
