Gold Price Forecast: XAUUSD Climbs to $2,570 as Market Eyes Fed Rate Outlook
In Friday’s Asian trading session, the gold price forecast shows a slight rebound as XAUUSD inches up to $2,570. After hitting a two-month low, gold is attempting a recovery—though the upside remains constrained due to a strong US dollar and mounting uncertainty over the Federal Reserve’s interest rate decisions.
The market remains divided on whether the Fed will proceed with its expected rate cuts this year. Despite Fed Chair Jerome Powell acknowledging that the economy has performed “remarkably well,” he stopped short of confirming a dovish pivot.
Meanwhile, Richmond Fed President Thomas Barkin noted that while progress has been made, further work is required to ensure inflation remains under control.
Key Economic Indicators and Their Impact on XAUUSD
US Inflation and Producer Prices
Data released on Thursday shows that the US Producer Price Index (PPI) rose 2.4% year-on-year in October—exceeding expectations and hinting at persistent inflation. This uptick reduces the likelihood of aggressive rate cuts, thereby pressuring gold.
Retail Sales and Jobless Claims
We will closely watch the upcoming US Retail Sales report and figures like the NY Empire State Manufacturing Index and Industrial Production. Any signs of economic resilience may weigh further on gold. Weekly jobless claims slightly decreased to 217K, lower than the expected 223K, suggesting a still-tight labor market.
Geopolitical Risks Support Gold as Safe-Haven Asset
While macroeconomic indicators weigh on gold, geopolitical tensions provide a counterbalance. Rising conflicts in the Middle East and the war in Ukraine are keeping gold and US dollar attractive as safe-haven investments. Historical trends show that during periods of heightened geopolitical risk, gold often outperforms.
In addition, market reactions to Donald Trump’s economic outlook have fueled concerns over future inflation, reinforcing gold’s appeal as a hedge.
Conclusion: Can Gold Sustain Its Recovery?
The gold price forecast for the near term remains cautiously optimistic. While strong economic data and the Federal Reserve’s hesitancy are considered bearish factors, ongoing geopolitical instability and inflation risks may create bullish momentum for gold.
Traders should monitor upcoming US data releases and Fed commentary for clearer direction. If the Fed leans more dovish, gold could break higher. Conversely, strong data may force another pullback.
