Gold Price Forecast: XAU/USD ticks up to near $3,360, wobbles around 20-day EMA

LONDON (August 13) Gold price (XAU/USD) trades marginally higher to near $3,360.00 during the European trading session on Wednesday. The yellow metal edges higher as United States (US) Treasury yields plunge due to escalating speculation about the Federal Reserve (Fed) to resume the monetary-expansion cycle from the September monetary policy meeting.

10-year US Treasury yields are down 1.2% to near 4.26%. Lower yields on interest-bearing assets improve the appeal of non-yielding assets, such as Gold.

Financial market participants have increased bets supporting interest rate cuts by the Fed in the policy meeting next month as the US Consumer Price Index (CPI) report for July didn’t show any signs pointing to further flow of the tariff impact into prices. June’s CPI report showed that prices of goods that are largely imported into the US have increased.

According to the CME FedWatch tool, the probability of the fed to cut interest rates in the September meeting has increased to 94% from almost 86% recorded on Monday.

Meanwhile, weakness in the US Dollar (USD) has also supported the Gold price. Technically, lower US Dollar makes the Gold price an attractive bet for investors.

FXStreet