Gold (XAU/USD) edges higher on Wednesday as traders lean into a more dovish Federal Reserve (Fed) outlook, with XAU/USD trading around $4,171, near two-week highs after closing almost unchanged on Tuesday.
Traders grew more confident in a softer monetary policy path after reports that White House Senior Adviser Kevin Hassett has emerged as the leading candidate to become the next Fed Chair. Hassett's rise to the top of the shortlist is being viewed as a dovish signal, especially since he has previously advocated for interest rate cuts.
Furthermore, delayed US economic data released on Tuesday showed weaker consumer spending and a moderation in producer prices, leading markets to bolster expectations of a December rate cut.
Lower interest rates generally bode well for the non-interest-bearing precious metal. However, Gold could face headwinds from reduced safe-haven demand after positive headlines suggested signs of progress in Russia-Ukraine peace talks.
Market movers: Peace-talk headlines lift risk mood as DXY lingers near lows.
The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is hovering around 99.84 after slipping to a fresh weekly low of 99.60 earlier in the day.
Early signs of progress in US-brokered Russia-Ukraine peace talks supported risk sentiment after an ABC News report cited a US official saying Ukraine had agreed with the US on the terms of a possible peace deal during talks in Abu Dhabi. However, the Kremlin said on Wednesday that it is premature to talk about reaching a peace agreement, according to Interfax.
Deutsche Bank raised its 2026 Gold forecast to $4,450 from $4,000 on Wednesday, citing stronger central-bank buying and growing investor interest. The bank now expects a possible high near $4,950, which would be about 14% above current December 2026 futures.
According to the World Gold Council report published on 25 November, global Gold ETF holdings saw a net inflow of 55.1 tonnes in October 2025, driven by strong additions in North America (47.2 tonnes) and Asia (44.8 tonnes), while Europe recorded notable outflows of 37.3 tonnes.
The US calendar features second-tier releases on Wednesday, including September Durable Goods Orders, weekly Initial Jobless Claims, and the Fed's Beige Book
Source: Fxstreet
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...