Gold price Forecast: “Fed Chair Powell signaled the Federal Reserve will slow the pace of interest-rate increases next month, but this does not mean rates will not go past 5%. However, market pricing of the terminal rate is now just under 5%.”
“The confirmation of a slower pace of tightening prompted the market to go bid for Gold. Still, given that inflation will be a problem for some time suggests that even though the rate of tightening may moderate, there are still considerable risks that policy keeps on tightening.”
“Current price action may be the result of the last short positions being covered. We still expect Gold will trend lower into 1st Quarter 2023.”
Gold prepares for US NFP with a step back to $1,800
Gold price repeats the typical pre-NFP consolidation as it slides from a four-month high to $1,798 during early Friday. The yellow metal prints the first daily loss in four amid cautious markets. IMF’s Georgieva cites recession risks to strengthen gold’s pullback moves.