Gold Price Forecast: XAU / USD Bulls and Bears Battle It Out Between Key Hourly Levels

After rising from a low near $1,823 at the beginning of the week and reaching a high of $1,844, the price of gold is still in a bullish position.

The dollar and bond yields rose on expectations of higher interest rates due to a succession of unexpectedly robust economic reports that have surfaced in recent weeks, which may prompt a more hawkish response from the central bank. The data has prompted Fed member Kashkari (voter) to reconsider his prior dovish posture; he has stated that he is amenable to a 50bps rate hike at the March meeting. Nonetheless, he emphasized that the final rate is more essential than the magnitude of rate increases.

The data, according to analysts at ANZ Bank, will likely maintain pressure on the Fed to raise interest rates. A stronger USD and higher yields were also headwinds for investor demand for the precious metal. Indeed, rate futures in the United States have priced in a highest fed funds rate of 5.4% for September. Federal Reserve rate cuts this year have all but been priced out by the market. The Federal Reserve sentiment keeps the dollar in the hands of investors as a result of the belief that the central bank will need to raise interest rates more than initially anticipated.