GOLD PRICE FORECAST: XAU/USD SHIFTS FLATS AMID FED CHAIR POWELL’S REMARKS

• Gold price dips within the $2030 - $2040 range following Federal Reserve Chair Jerome Powell's comments post-rate decision.
• Powell indicates potential rate cuts depending on economic progress, stressing no rush in shifting the current monetary policy.
• XAU/USD reacts to Powell's dismissal of a March rate cut and his emphasis on a cautious approach to managing inflation.

Gold price trims earlier gains and retreats after the US Federal Reserve decided to keep rates unchanged while pushing back against speculation of rate cuts. In addition, the US Federal Reserve Chair Jerome Powell, pushed back against rate cuts in March, driving the yellow metal price towards the day lows. At the time of writing, XAU/USD trades volatile within the $2030 - $2040 area as market participants diggest Fed Chairman Jerome Powell’s comments.

Fed Chair Powell comments

Fed Chair Jerome Powell commented that policy rates likely peaked and has opened the door to rate cuts this year, adding that it would depend on the evolution of the economy. He added the economic outlook remains uncertain, and would decide meeting by meeting. He added that no rate cuts were discussed in the meeting, and they’re in no rush to declare victory on the fight on inflation.

Recently, he said that he doesn’t think a rate cut in March is on the table