Gold price is showing minor losses on Thursday. However, the XAG/USD pair is still set to close the month with a gain of 1.94%. The positive sentiment around the bullion prices can be attributed to the expectations of significant rate cuts in the coming months.
On a yearly timeframe, the price of gold per ounce will be up 12.82% in 2023. The remarkable gains in the precious metal come after sideways price action during the prior two years. If the US dollar weakens further, the uptrend in gold and silver prices is likely to continue in the next months.
The Fed Watch Tool of CME currently indicates a 16.5% probability of a Fed pivot in the next month’s FOMC meeting. This will be the first meeting of 2024, as the FOMC members are set to meet on January 30-31.
On Thursday, XAU/USD kept consolidating around the most critical level of $2,075. At press time, the price of yellow metal was down 0.14%. However, this price action could be the calm before the storm, as I expect a major move in the next few days.
The direction of this move will depend on the price action, which is around $2,075. A daily closure above will flip the Gold price forecast very positively for most analysts. This will put a move toward $2,250 on the cards, which is the 1.618 fib retracement level, as shown in the chart below.
