XAUUSD nears 7 month high

After a 5-day rally, during which the bullion has almost reached 7-month high (at $2063.16), XAUUSD is now stabilizing at ~$2040.22.

The possibility of a sooner-than-expected Fed’s rate cuts is significantly affecting the bullion dynamics.

At the moment the markets already expect a 48.3% chance of an interest rate cut in March 2024.

Thursday’s PCE price Index reading came inline with the forecasted values (3.5% YoY & 0.2% MoM), underlining the possibility of an end to the Fed’s aggressive monetary policy.

Investors’ eyes are now pinned towards the Fed Chair Powell speech scheduled for later today.

From a technical side…

• A consolidation pattern might form at ~$2031.31-$2047.23 as investors await for further macro-economic developments
   
• The current position of the 14-day relative strength index (RSI) at 69.20 (<30 – oversold; >70 – overbought) may signal a potential technical pullback