Title: Gold Price Forecast: XAU/USD dribbles around 200-DMA amid anxious markets

Feb 03, 2022 12:23AM ET

By: AnalysisWatch

Gold continues to hold above $1,800 as market participants await monetary policy announcements from the European Central Bank and the Bank of England early on Thursday.

Although the metal is falling for the first time in four days and is off its weekly high as risk appetite wanes ahead of key central bank events, the inability of the US dollar index and government bond yields to induce risk-off sentiment is keeping gold buyers hopeful.

However, equity futures and Asia-Pacific stocks have been under pressure since the start of the day as traders brace for hawkish monetary policy in light of recent inflation fears expressed by Fed nominees Joe Biden and Janet Yellen. In the same vein, positive inflation data from the UK prompted Andrew Bailey and Co. to announce a second rate hike.

Therefore, today's central bank actions will be crucial for the short-term direction of the gold price. In addition, the same day will see the release of US non-farm productivity and unit labor costs for the fourth quarter, as well as the ISM services PMI for January and new industrial orders for December, making for a busy day for XAU/USD traders.

At $1,808.20 an ounce, gold is unchanged in trading so far, holding above the key $1,800 per ounce level. However, the main focus was on the US dollar and US Treasury bond yields, both of which fell following disappointing US jobs data.