Gold Price Forecast: XAUUSD to gain traction on soft PMI and smaller Fed’s rate hikes

XAUUSD ended up closing the week little changed above $1,750. The minutes of the Federal Reserve’s October policy meeting and PMI surveys could impact the US Dollar’s (USD) valuation and influence Gold’s action, FXStreet’s Eren Sengezer reports.

Gold to turn south If China decides to re-introduce strict measures

“S&P Global will publish the preliminary Manufacturing and Services PMI surveys for November. In case the Services PMI falls further in early November, the US Dollar could struggle to find demand and allow XAUUSD to stretch higher.” 

“The US Federal Reserve (Fed) will publish the minutes of the October policy meeting. If the Fed’s publication confirms policymakers’ intention to opt for a smaller rate increase in the last policy meeting of the year, XAUUSD could gain traction.” 

“Market participants will pay close attention to developments surrounding China’s zero Covid policy, given the country is a major consumer of the yellow metal. If China decides to re-introduce strict measures next week, Gold price is likely to turn south.”