Gold (XAU) Daily Forecast: Climbs to $2,427; Upward Channel Drives Buying?

This prospect has kept U.S. Treasury yields low, benefiting the non-yielding gold.

Impact of Political Developments on Gold Prices

A failed assassination attempt on Donald Trump has not only potentially boosted his odds in the 2024 presidential race but also influenced market sentiment towards less stringent regulatory frameworks.

While this could enhance the allure of riskier assets, it might simultaneously restrict the upward momentum in Gold prices, traditionally viewed as a safe-haven asset.

Market Dynamics Influencing Gold Prices

Despite the strength of the U.S. dollar, which typically inversely correlates with Gold prices, Gold has shown resilience.

The U.S. dollar has seen some gains, moving away from a three-month low and potentially capping further rises in Gold prices. Additionally, ongoing rallies in global equity markets might limit Gold’s appeal as a safe investment.

Economic Indicators and Gold Price Forecast

Recent U.S. economic data, including a drop in the headline Consumer Price Index (CPI) for the first time in over four years and a deceleration in the annual rate to 3% from 3.3%, supports a less aggressive stance on inflation. This could imply an imminent reduction in interest rates, supporting Gold prices.

Looking ahead, U.S. Retail Sales data, expected to show flat growth with a slight 0.1% rise in sales excluding automobiles, will be crucial for future Gold price directions. This data may influence Federal Reserve policy decisions, which in turn could affect the trajectory of the Gold price.

Short-Term Forecast

Gold (XAU/USD) could see continued gains towards $2,440, driven by Fed rate cut expectations and low Treasury yields.