Gold Price Prediction: The XAU/USD pair seeks to maintain above $1,980, while investors observe the Fed's preferred inflation tool

During the Asian session, the gold price (XAU / USD) aims to maintain its auction above the critical resistance of $1,980.00. Even though the US Dollar Index (DXY) has shown signs of recovery from 102.00, the precious metal is aiming to surpass Thursday's high of $1,984.65.

In the Asian session, S&P500 futures have generated significant gains. US equities have sustained the purchasing frenzy, indicating a buoyant market sentiment. In the meantime, the demand for US government bonds has decreased further in the expectation that the US financial sector will not suffer further losses.

Investors are anticipating that the Federal Reserve will maintain its monetary policy posture in May, so the USD Index's recovery must pass through a number of filters. (Fed). Jerome Powell, chairman of the Federal Reserve, stated in a private meeting with US lawmakers that he anticipates one more rate hike in 2023. The Fed Chairman Powell's statement is not limited to the May policy. Therefore, the likelihood of a stable monetary policy in May is very high.

The USD Index will remain active on Friday prior to the release of the Personal Consumption Expenditures (PCE) Price Index data. Wells Fargo analysts anticipate that the PCE deflator will outpace nominal spending (+0.3%).