Gold Price News and Forecast: XAU/USD remains largely unchanged

FXStreet Team FXStreet

XAU/USD precious metal steady as investor risk appetite likely unchanged post the Fed

As expected the Fed left rates unchanged and the accompanying statement did little to surprise investors. The doveish tone continues as the Fed says the economy has strengthened and inflation effects are likely transitory. The Fed says indicators of economic activity are improving and employment has strengthened but says sectors most affected by the pandemic remain weak but have shown improvement.

Calm down, it‘s a shallow Gold correction

The outlook for gold deteriorated during the second half of yesterday‘s trading as copper gave up some of its gains while long-dated Treasuries plunged. And overnight, gold felt obliged to fill the void, and went $10 down. The situation is far from bleak – gold is nibbling at the bearish gap, but it‘s the miners that are providing more than a glimmer of hope.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday.