Gold Price Forecast: The XAUUSD's recovery remains elusive as the Fed's bets are readjusted

The cause may be related to the recent hawkish statements made by Federal Reserve officials, as well as China's attempts to influence mood. However, a lack of important data/events and the readiness of global policymakers to combat recession difficulties entice XAUUSD purchasers.

James Bullard, president of the Federal Reserve Bank of St. Louis, and Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, disputed the market's pre-established views on the Fed's future rate hikes on Thursday, primarily in support of 50 bps moves. The cause may be associated with the robust Retail Sales and Producer Price Index (PPI) statistics.

In response to the Fed's hawkish comments, 10-year US Treasury yields rebounded from a six-week low and established the largest divergence with their two-year counterpart since the 1980s, indicating recessionary concerns. However, the recent reduction in Fed betting favoring a 50 basis point (bps) rate hike in December and the increase in wagers favoring a 75 basis point (bps) move further weigh on the Gold price.

In addition, China's failure to wow investors, despite expectations of faster growth in the coming years, combines with geopolitical concerns surrounding Russia to keep gold sellers optimistic.

However, a light economic calendar and upbeat statements from Japan and China's authorities have challenged the XAUUSD bears recently, leaving the outlook uncertain.