Gold (XAU) price recovered on Thursday, but a strong US dollar and high real yields continue to limit the rebound. The FOMC minutes kept the focus on the rate hike in December as officials weighed the risk of persistent inflation. The high cost of energy adds to these concerns, while central bank buying offers some support. In my view, a softer dollar and a break above $4,330 would strengthen the recovery in gold. This article presents the latest fundamental drivers, key technical levels for gold and signals from the gold-to-silver ratio to understand the next move in the gold market.
Gold Price Forecast: Strong Dollar Caps Rebound After FOMC Minutes
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Key Points:
- The risk of December rate hike continue to limit gold’s recovery.
- Gold could fall towards $3,800 if it breaks below $4,000.
- A break above $4,330 would strengthen gold’s recovery.