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- Gold Price Forecast: XAUUSD to bounce higher on dovish FOMC Minutes
Gold Price Forecast: XAUUSD to bounce higher on dovish FOMC Minutes
Gold closed the week in the red despite a late rebound on Friday. This week, the calendar features FOMC Minutes and US Nonfarm Payrolls data. A dovish tone could weigh on the dollar and open the door for a rebound, according to FXStreet’s Eren Sengezer.
Gold to suffer further pressure on increasing odds of 75 bps hike
“On Wednesday, the FOMC will release the minutes of its June policy meeting. According to the CME Group FedWatch Tool, markets are currently pricing in a 66.5% probability of another 75 basis points (bps) Fed rate hike in July, compared to 84% a week ago. In case the FOMC’s publication boosts the odds of a 75 bps hike, gold could face additional bearish pressure. On the other hand, a dovish tone could weigh on the dollar and open the door for a rebound.”
“On Friday, the labor market is expected to show a loss of growth momentum in June with the NFP rising by 250K following May’s increase of 390K. Investors will also pay close attention to wage inflation data. On a yearly basis, Average Hourly Earnings are expected to rise by 5.2%, same as in May. Unless there is a negative surprise in the NFP print, a higher-than-forecast wage inflation growth could boost the greenback and vice versa.”
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