Could US Gross Domestic Product Push Gold Up?

Gold price has taken off to renew nine-month high, up for the fourth consecutive trading day. The weaker US dollar reinforces the Gold Index’s upside while a cautious mood prevails most financial markets ahead of the key United States Gross Domestic Product.

Dovish bias surrounding the Fed’s intention contrasts with the hawkish outlook expressed by ECB policymakers to weigh on USD and, in turn, favour gold buyers. Convergence of six-week-old ascending trend line, March 2022 peak could test XAU/USD bulls. The precious metal is trading at $1946.86 at the time of writing.

The US dollar has exhibited negative performance for the third week, as sellers attack the six-month low marked the last week around 101.30, close to 101.55. Given the inverse relationship between the US dollar and the Gold price, the precious metal benefits from the dollar’s current situation.

Hopes for a dovish FOMC decision has grown stronger amid policymakers’ blackout and weigh on the US dollar which is yearning for a catalysts to surge. The reason could be linked to the previously downbeat US data surrounding wages for December and activities for January.