Gold Price Forecast: XAUUSD to extend its gains on a dovish 50 bps rate hike by the Fed

Gold Price rebounds from multi-month lows but will it last? As FXStreet’s Dhwani Mehta notes, XAUUSD could stage a solid comeback on a dovish Fed rate hike.

XAU/USD’s fate hinges on a dovish or hawkish rate hike by the Fed

“Gold’s fate will remain at the mercy of the Fed outcome, with the fully baked-in 75 bps rate hike to trigger a ‘sell the fact’ reaction in the dollar, which could underpin the bright metal.” 

“A 50 bps rate hike could come as a dovish surprise, saving the day for Wall Street indices. Risk flows could return if the Fed delivers a dovish hike that could reduce the dollar demand, boding well for the USD-priced gold.”

See – Fed Preview: Forecasts from 12 major banks, increasing bets of a 75 bps rate hike