Gold (XAU) Daily Forecast: Surge to $2,310 Amid Fed Meeting and CPI Figures

Consequently, the U.S. dollar has reached one-month highs, applying downward pressure to gold prices while Treasury yields have increased.

Impact of Fed Meeting and CPI Data

Gold’s support at $2,300 per ounce is bolstered by the fading likelihood of near-term Fed rate reductions. The Fed is likely to maintain current interest rates at the conclusion of its meeting today.

Signals regarding future rate adjustments will be particularly scrutinized, with the market speculating about a possible cut in September.

Also, CPI data due for release today is anticipated to confirm ongoing high inflation levels for May.

Inflation Concerns and Monetary Policy

Elevated inflation diminishes the attractiveness of gold, increasing the opportunity cost of holding such non-yielding assets.

With persistent inflation supporting a strong U.S. dollar, prospects for gold remain subdued.

May’s CPI is expected to show a modest rise of 0.1%, with the annual rate holding at 3.4%.

Global Political and Economic Factors

Political uncertainty in Europe and global tensions are offering some support to gold, prompting caution among bearish traders.

The Federal Reserve’s upcoming economic projections and potential rate cuts—possibly only a 25 basis-point reduction later this year—could further bolster the dollar, limiting gold’s gains.

The U.S. Dollar Index has remained near its peak since early May, affecting gold prices.

Short-Term Forecast

Gold prices are expected to stabilize around $2,300 as traders await key U.S. inflation data and Fed rate decisions, which could influence short-term trends.