

others
Gold rebounds slightly though uncertainty ahead of Fed’s policy keeps downside intact – Crypto News
- Gold price hovers below $2,300 as uncertainty ahead of the Fed’s policy announcement key appeal of the US Dollar and bond yields firm.
- The Fed is expected to support keeping interest rates at their current levels for a longer period.
- The strong US Q1 Employment Cost Index adds to evidence of the stubborn inflation outlook.
Gold price (XAU/USD) rebounds slightly to $2,300 in Wednesday’s early New York session. The precious metal remains broadly weak as the US Dollar and bond yields strengthen amid firm speculation that the Federal Reserve (Fed) will opt for maintaining a restrictive interest rate environment for a longer period due to inflation remaining persistently higher than expected in the first quarter of the year.
In this context, 10-year US Treasury yields move higher to 4.69%. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies and is negatively correlated to the Gold price, jumps to a two-week high of around 106.50. The US Dollar remained on the backfoot last week after weak growth in Q1 Gross Domestic Product (GDP) raised concerns over the country’s economic outlook. However, it bounced back strongly on Tuesday after the US Bureau of Economic Analysis (BEA) reported strong Q1 Employment Cost Index numbers.
Meanwhile, the appeal for the US Dollar has further improved as the ADP Employment Change for April has surprisingly turned out upbeat. The ADP agency showed that US private employers hired 192K job-seekers, higher than the prior reading of 184K. Investors forecasted a slight decline to 175K.
Daily digest market movers: Gold price reverses intraday losses despite upbeat US Employment Change
- Gold price finds support near the crucial support of $2,285. The near-term bias remains bearish on expectations that the Federal Reserve will maintain a hawkish guidance on interest rates in its monetary policy meeting after keeping interest rates steady in the range of 5.25%-5.50% for the sixth straight time.
- A slew of hotter-than-expected inflation readings so far this year indicate that the disinflation process has stalled. It suggests that the Fed should keep interest rates high for a longer period until policymakers gain confidence that price pressures will sustainably return to the desired rate of 2%. Also, the strong US Q1 Employment Cost Index is another indication that price pressures remained hot in the January-March period. The index is generally driven by a strong wage growth environment in which labor demand remains strong, which rose by 1.2% in the first quarter, against the consensus of 1.0% and the prior reading of 0.9%.
- Prospects of interest rates remaining higher bode poorly for Gold as it increases the opportunity cost of holding an investment in it. Meanwhile, investors are keen to know about rate-cut timing and the current status of the Fed’s three rate-cut projections, indicated by March’s dot plot. The CME FedWatch tool shows that traders see the Fed begin reducing interest rates from the September meeting.
- In Wednesday’s session, investors will also focus on the ISM Manufacturing PMI data for April will be published in the early New York session before the Fed’s interest rate decision. The Manufacturing PMI is estimated to have dropped to 50.0 from 50.3 in March.
- From the Manufacturing PMI report, investors will keenly focus on the New Orders subcomponent. The preliminary PMI survey by S&P Global for April reported that output growth cooled in line with demand weakness as new orders decreased for the first time in six months, albeit dropping only modestly. Falling new business was signalled among manufacturers and service providers alike. Upbeat employment and factory data would improve the US economic outlook, while weak numbers will deepen concerns over a slowdown.
Technical Analysis: Gold price trades close to $2,300
Gold reported steep losses after a breakdown of the Bearish Flag formation in the four-hour time frame. The Bearish Flag formation demonstrates a consolidation move after a sharp correction, generally following the ongoing trend. The near-term outlook is bearish as the Gold price is trading below the 20-period Exponential Moving Average (EMA), which is at $2,312.
On the downside, March 23 high at $2,223 will be the major support for the Gold price. The 14-period Relative Strength Index (RSI) oscillates in the bearish range of 20.00-40.00, suggesting that momentum has leaned towards bears.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
-
Technology1 week ago
Best 5G phones under ₹10,000 in July 2025: Infinix Hot 60, Samsung M06 and more – Crypto News
-
Technology3 days ago
Meet Matt Deitke: 24-year-old AI whiz lured by Mark Zuckerberg with whopping $250 million offer – Crypto News
-
others1 week ago
Japan CFTC JPY NC Net Positions rose from previous ¥103.6K to ¥106.6K – Crypto News
-
Cryptocurrency5 days ago
XRP inflows drop 95% since July spike, while Chaikin data signals possible rally – Crypto News
-
Blockchain4 days ago
Bank of America Sees Interest in Tokenization of Real-World Assets – Crypto News
-
Blockchain1 week ago
Tether Gold (XAUt) Market Cap Soars as Gold Hits Record Highs in 2025 – Crypto News
-
Cryptocurrency1 week ago
Market update: Bitcoin rises after US-EU announce framework trade agreement – Crypto News
-
others5 days ago
Breaking: Strategy Files $4.2 Billion STRC Offering To Buy More Bitcoin – Crypto News
-
others4 days ago
XRP NIGHT Token Airdrop: Snapshot, Claim Date and What to Expect? – Crypto News
-
Technology1 week ago
Who is Shengjia Zhao? ChatGPT co-creator named Chief Scientist at Meta’s Superintelligence Labs – Crypto News
-
others5 days ago
Ripple Swell 2025: Top Speakers and Panelists to Watch this November – Crypto News
-
Blockchain5 days ago
SEC Crypto ETFs Ruling Brings Structural Fix, Not Retail Shakeup – Crypto News
-
Business5 days ago
Breaking: Solana ETFs Near Launch as Issuers Update S-1s With Fund Fees – Crypto News
-
Technology4 days ago
Oppo K13 Turbo series confirmed to launch in India with in-built fan technology: Price, specs and everything expected – Crypto News
-
others1 week ago
‘Sit Tight With Bitcoin’ Robert Kiyosaki Predicts Great Depression 2.0 – Crypto News
-
Business1 week ago
Ethereum Breaks $3,900 as SharpLink Makes Another $295M ETH Purchase – Crypto News
-
Cryptocurrency1 week ago
Bitcoin and Ethereum ETFs Pull in Record-High $11.2 Billion in July – Crypto News
-
Business1 week ago
Breaking: US SEC Delays Launch Of Truth Social’s Bitcoin ETF And Grayscale’s Solana ETF – Crypto News
-
Business6 days ago
Chase Launches $4 Million Grant Program as Restaurants Struggle – Crypto News
-
Business6 days ago
Stablecoins Won’t Boost Treasury Demand, Peter Schiff Warns – Crypto News
-
Technology1 week ago
Solayer Launches USDC-Powered Hotel Booking Platform To Give Crypto Travel a Boost – Crypto News
-
Metaverse7 days ago
OpenAI rolls out ‘Study Mode’ in ChatGPT: What is it? How to use? All your questions answered… – Crypto News
-
Technology7 days ago
Breaking: BlackRock’s Ethereum ETF Staking Proposal Advances As SEC Acknowledges Filing – Crypto News
-
others7 days ago
Blockchain Gaming Is Growing Up – What’s Behind the Sector’s Quiet Comeback – Crypto News
-
Technology6 days ago
Is AI causing tech worker layoffs? Thats what CEOs suggest, but the reality is complicated – Crypto News
-
De-fi5 days ago
White House Crypto Report Recommends Expanding CFTC’s Role in Crypto Regulation – Crypto News
-
Technology5 days ago
Coinbase to Offer Tokenized Stocks and Prediction Markets in U.S. – Crypto News
-
others5 days ago
Canadian Dollar under pressure amid weak GDP, Trump tariff threat, and strong US data – Crypto News
-
Technology4 days ago
Big Tech’s Big Bet on AI Driving $344 Billion in Spend This Year – Crypto News
-
Cryptocurrency4 days ago
CME XRP Futures Hit Record Highs in July Amid ETF Approval Optimism – Crypto News
-
Technology1 week ago
Indias startup wave merges AI with tradition for smarter daily solutions – Crypto News
-
De-fi1 week ago
ETH Unstaking Queue Hits Record High, Led by Justin Sun-Linked Addresses – Crypto News
-
Cryptocurrency1 week ago
ZK breakthroughs, onchain comebacks and stablecoin shakeups – Crypto News
-
Technology1 week ago
Just In: $111B Brokerage Giant Interactive Brokers Explores Stablecoin for Funding – Crypto News
-
others1 week ago
Why Does Jim Cramer Think the Market’s Slow Pace is Actually Good Sign? – Crypto News
-
others1 week ago
EUR/USD dives as the US Dollar outperforms with all eyes on the Fed decision – Crypto News
-
others1 week ago
Breaking: PayPal to Let Merchants Accept Payments in Over 100 Cryptocurrencies – Crypto News
-
Blockchain7 days ago
SEC Gives Green Light to In-Kind Transactions for Crypto ETPs – Crypto News
-
Technology7 days ago
Spotify hits 276M subscribers and strong user growth in Q2, but revenue and profit fall short of targets – Crypto News
-
Technology6 days ago
Ethereum Price Prediction- Bulls Target $5,400 Amid DeFi Revival and Soaring TVL – Crypto News
-
Cryptocurrency6 days ago
Altcoins update: Dogecoin and Injective signal recoveries as Ethereum eyes $4,000 – Crypto News
-
Technology6 days ago
Coinbase exchange targets alleged cybersquatter in lawsuit – Crypto News
-
Technology5 days ago
Solana DEX volume dips 20% after co-founder slams meme coins – Crypto News
-
Technology5 days ago
Tim Cook confirms Apple will ramp up AI spending, ‘open’ to acquisitions – Crypto News
-
Technology4 days ago
Oppo K13 Turbo series confirmed to launch in India with in-built fan technology: Price, specs and everything expected – Crypto News
-
Blockchain2 days ago
XRP Must Hold $2.65 Support Or Risk Major Breakdown – Analyst – Crypto News
-
Blockchain2 days ago
XRP Must Hold $2.65 Support Or Risk Major Breakdown – Analyst – Crypto News
-
Technology2 days ago
Beyond Billboards: Why Crypto’s Future Depends on Smarter Sports Sponsorships – Crypto News
-
De-fi1 week ago
Bank of America Says U.S. Lenders Ready Stablecoin Launches – Crypto News
-
others1 week ago
Eurozone CFTC EUR NC Net Positions declined to €125.5K from previous €128.2K – Crypto News