Gold (XAUUSD) Price Forecast: Market Stalls at 50-Day Average Awaiting Powell Signal

LONDON (July 30) Gold prices edged higher on Wednesday as traders attempted to recover from a four-day, $137.28 correction. The move comes after two sessions of tight-range trading, suggesting the market is on hold ahead of the Federal Reserve’s policy statement and Chair Jerome Powell’s press conference, both scheduled for later today.

Fed Decision and Powell Comments to Set the Tone

The Federal Reserve is expected to leave interest rates unchanged, with Fed funds futures pricing in a 98% probability that rates remain in the 4.25%–4.5% range. However, the focus will be on Powell’s tone during the press conference. Analysts from Deutsche Bank note Powell is unlikely to rule out a September rate cut but also won’t raise expectations for it. With markets pricing in two cuts before year-end, traders will be watching closely for any sign of internal dissent or dovish leanings.

U.S. Treasury yields were largely unchanged ahead of the decision, with the 10-year yield at 4.328% and the 2-year slightly lower at 3.867%. Yields remaining elevated limits gold’s upside, but a dovish Fed tone could reverse that.

FXEmpire