Gold steadies around $2050 on Fed’s latest signal

The Gold Index hits new highs as Fed signals QT pause, though profit-taking weighed on the precious metal’s price which is trading around $2050.00 at the time of writing.

The labour market eases as US Initial Jobless Claims rise to 242K, but Continuing Claims fall to 1.81 M. Gold could dip below $2050 with sellers eyeing $2000; otherwise, buyers could challenge the all-time-high.

Gold price remains trading in positive territory after hitting a new all-time high at around $2081.82. Some profit-taking, risk aversion, and another central bank increasing rates dragged XAU/USD price towards the $2050 area.

The financial turmoil around the US banking system continues, as PacWest and Western Alliance Bank are under solid selling pressure, which triggered flows towards safety. Therefore, XAU/USD continues to hold its ground, despite recent US Dollar (USD) strength.

The economic agenda in the United States (US) revealed that unemployment claims for the week ending on April 29 jumped to 242K, exceeding estimates of 240K, a report cheered by US Fed officials

The XAU/USD reached its new high after the Fed increased rates above the 5% threshold and signaled that it would be data-dependent, opening the door for a pause.