Gold Weekly Forecast: XAUUSD indecisive as investors assess central banks' rate outlook Following the previous week’s sharp decline, Gold managed to stage a rebound during the first half of the week with the dollar struggling to find demand.
nd. Rising US Treasury bond yields capped XAU/USD’s upside on Thursday and the upbeat January jobs report from the US didn't allow the pair to gather bullish momentum. Gold is likely to remain inversely correlated with the benchmark 10-year US T-bond yield next week as investors will await the US JanuaryWhat happened last weekmade it difficult for the greenback to find demand on Monday. Reflecting the improving mood, the S&P 500 Index rose nearly 2% on Monday.
The BOE hiked its policy rate by 25 bps to 0.5% following the February policy meeting. The policy statement revealed that four members of the Monetary Policy Committee voted for a 50 bps rate hike. With the initial reaction,surged higher and the lack of demand for the dollar allowed XAU/USD to cling to its weekly gains.
On Thursday, the US Bureau of Labor Statistics will release the January Consumer Price Index data. On a yearly basis, the CPI is forecast to rise to 7.2% from 7% in December. A stronger-than-expected reading could ramp up the probability of a 50 bps hike in March, which currently stands at 25% according to the CME Group FedWatch Tool – and weigh on XAU/USD.
In case $1,805 is confirmed as resistance, gold needs to make a daily close below $1,800 to convince bears. In that case, $1,780 aligns as the next support.The FXStreet Forecast Poll shows that gold's bullish bias is unchanged in the near term but the one-week target of $1,809 suggests that there isn't a lot of room on the upside.
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