Gold Price Forecast: XAU/USD advances to $2,000 on the lower US yields
- Gold price gains momentum around $2,000 on the weaker USD.
- All participants agreed that policy decisions would continue to be based on the totality of incoming information.
- Gold traders will focus on the US Jobless Claims, Durable Goods Orders, and the University of Michigan Consumer Sentiment survey.
Gold price (XAU/USD) attracts some buyers and breaks above $2,000 during the early Asian trading hours on Wednesday. The uptick of the precious metal is boosted by the lower US Treasury bond yields and the weaker US dollar (USD).
The November Federal Open Market Committee (FOMC) Meeting Minutes showed all participants agreed policy decisions at every meeting would continue to be based on the totality of incoming information and judged it appropriate to maintain the target interest rate at 5.25%–5.5%.
Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, declines to 103.60, the lowest level since late August. The US Treasury bond yields edge lower, with the 10-year yields dropping to 4.40%. This, in turn, boosts the yellow metal, as US yields are the opportunity cost of holding non-yielding metals.
Economic data released on Tuesday showed that the US Chicago Fed National Activity Index for October dropped to -0.49 from the previous reading of -0.02. Additionally, the Existing Home Sales fell 4.1% MoM from a 2.2% decline in September.
Moving on, gold traders will monitor the US Jobless Claims, Durable Goods Orders, and the University of Michigan Consumer Sentiment survey on Wednesday. Traders will take cues from these figures and find trading opportunities around the gold price.