XAUUSD MARKET SIGNAL
Gold Price Forecast: XAU/USD edges higher on geopolitical risks, focus remains on FOMC
- Gold attracts some haven flows amid the risk of a further escalation in the Russia-Ukraine conflict.
- Retreating US bond yields also benefits the non-yielding metal, though the upside remains capped.
- Aggressive Fed rate hike bets underpin the USD and act as a headwind ahead of the FOMC decision.
XAUUSD MARKET SIGNAL :Gold catches some bids during the early European session and climbs to a fresh daily high, around the $1,676 region, reversing a major part of the previous day’s losses. The uptick is sponsored by reviving demand for safe-haven assets, though strong follow-through US dollar buying continues to cap gains for the XAU/USD.
Against the backdrop of concerns about a deeper global economic downturn, the risk of a further escalation in the Russia-Ukraine conflict drives some haven flows towards gold. In the latest development, Russian President Vladimir Putin announced partial military mobilization and tempers investors’ appetite for riskier assets.
The anti-risk flow is reflected by an intraday pullback in the US Treasury bond yields, which is seen as another factor benefitting the non-yielding gold. That said, expectations that the Fed will stick to its aggressive policy tightening path and raise rates at a faster pace should act as a tailwind for the US bond yields.
XAUUSD MARKET SIGNAL :In fact, the markets seem convinced that the US central bank will deliver another supersized 75 bps rate increase at the end of a two-day policy meeting on Wednesday. This remains supportive of the underlying bullish sentiment surrounding the USD, which might also contribute to keeping a lid on the dollar-denominated gold.
Confuse Which Broker is best ? , Here you can find the best regulated broker
![](https://reviewsupdated.com/wp-content/uploads/2021/09/fxtm-85x30-1.jpg"){kind=small}
