The XAUUSD price increased to 2,458 USD following the Federal Reserve’s interest rate decision and accompanying comments. Find out more in our XAUUSD analysis for today, 1 August 2024.
XAUUSD trading key points
- Market focus: The Federal Reserve chair confirmed a potential rate cut in September; the market awaits Friday’s US employment data
- Current trend: upward price momentum is underway
- XAUUSD forecast for 1 August 2024: 2,458 and 2,430
Fundamental analysis
XAUUSD quotes have reversed upwards, showing steady growth after the US Federal Reserve’s meeting and subsequent speech by its chair, Jerome Powell. As expected, the key interest rate remained at 5.5% at this meeting, with all 12 FOMC members unanimously agreeing on the decision.
In his remarks, the Federal Reserve chair noted that the US economy was approaching a point where monetary policy easing might be appropriate and hinted that a rate cut could occur in September. Gold reacted to Powell’s comments by rising to 2,458 USD per troy ounce.
XAUUSD technical analysis
On the H4 chart, XAUUSD quotes have broken above the boundaries of the descending price channel and are trading near 2,445. The downward price momentum has now formally ended, and gold may continue its ascent within a long-term uptrend after a correction of the current impulse.
The short-term XAUUSD price forecast suggests that if bulls continue their offensive and surpass the 2,458 level, there is potential for the price to reach a new all-time high of 2,483. Conversely, if the price drops below 2,440, it may trigger a correction towards 2,430 and possibly 2,400.
Summary
XAUUSD prices rose to 2,458 following the Fed’s interest rate decision and subsequent comments from its chair, Jerome Powell. Friday’s US employment market data could influence the future direction of XAUUSD quotes.
