Gold Prices Below $2,000 Amid Fed Uncertainty: Weekly Outlook

Gold prices (XAU/USD) are experiencing a struggle to gain momentum, staying below the psychologically crucial $2,000 mark during the European session. The hesitation among investors to commit to clear market directions is influenced by the uncertainty surrounding the Federal Reserve's rate-hike trajectory. The recent hawkish tone in the FOMC minutes and robust US economic data have bolstered speculations of prolonged higher interest rates, further supported by increased US Treasury bond yields. While market players anticipate a steady rate stance from the Fed, the possibility of rate cuts in 2024 continues to restrain the US dollar's recovery and supports Gold as a safe-haven asset amid weak equity market signals. Despite this, XAU/USD eyes a second consecutive weekly gain, with traders looking toward forthcoming US PMI data for potential market shifts.

On Friday, the XAU/USD moving slightly higher flat as the US market half day holiday. Currently the price is moving just below the upper band of the Bollinger Bands with a potential of moving higher to reach our resistance level. The Relative Strength Index (RSI) stay at 63 which reflects a neutral position with a slight bullish for the pair.

Resistance: $2,008, $2,021
Support: $1,988, $1,973