Gold hit resistance last week
XAUUSD
The Gold price is experiencing an upward trend for the third day in a row due to various factors. The safe-haven XAU/USD is benefiting from a decrease in risk, which is leading to a slight decline in the US Dollar.
Traders are closely monitoring upcoming data releases and central bank events this week, as they may provide new insights and influence market direction.
As predicted, the Federal Reserve chose to keep the current benchmark policy rates at 5.5% during their meeting on Wednesday.
Furthermore, it is expected that the central bank will implement another rate hike in 2023, aligning with the projection of slightly higher inflation by the Federal Open Market Committee (FOMC) compared to their previous forecasts.
Therefore, Federal Reserve officials unexpectedly adjusted their projected interest rates for 2024, raising them from 4.6% to 5.1%. This modification played a significant role in bolstering the strength of the US Dollar (USD).
The US Dollar Index (DXY), which measures how well the Greenback performs against six other major currencies, continues to increase and is currently trading at a six-month peak of approximately 105.50.