Title: Gold Price Forecast: XAU/USD to target $1,675 if the Fed changes course

November 02,2022 03:24 AM ET

By:AnalysisWatch

Gold prices are clinging on to recent recovery gains near $1,650 on Fed day. XAUUSD bulls could target $1,675 in case the Fed gives an easing signal, reports FXStreet's Dhwani Mehta.

In the event of a hawkish surprise, gold could resume its broader downtrend.

"XAUUSD price is looking for a sustained break above the previous day's high of $1,657 to challenge the bearish Daily Moving Average (DMA) at $1,660. If the Fed comes out in favor of a rate hike, gold bulls could show strength towards the late October high of $1,675.

"The renewed downside will open if Fed Chairman Jerome Powell maintains that a more aggressive rate hike is necessary to contain inflation. However, that appears to be a long shot.

"In a hawkish surprise, the gold price could resume its broader downtrend, with initial support seen at the recent range lows around $1,638." "The next downside top is lined up at the round number of $1,620, below which the October low at $1,617 could be threatened."