Gold eyeing $1980 resistance amid hawkish Fed language

Gold climbs 0.89%, trading at $1975.05 per ounce at the time of writing, as the US dollar’s strength subsides, investors are now eyeing the $1980 resistance level.

Fed Chair Jerome Powell’s comments and US Treasury Sec. Janet Yellen’s remarks on Friday were sufficient to shake the market, resulting in a significant uptick in XAU/USD Gold Index. the Gold Index is still on track for a 1.90% weekly loss after robust US Retail Sales, Industrial Production data, and falling unemployment claim hint at possible Fed action.

Gold price climbed more than 1% on Friday, trimming some losses sustained during the week as the Fed’s hawkish rhetoric bolstered the greenback, which posted gains of 0.37%, per the US Dollar Index (DXY). At the time of writing, XAU/USD is trading at $1979.90, up daily 1.12%.

XAU/USD bottomed at around $1954.14 as Jerome Powell delivered remarks at a conference on Friday. Fed Chair Jerome Powell indicated that inflation currently exceeds the target level and stresses the Fed’s unwavering commitment to guide inflation back towards the 2% target, asserting that “failure would cause greater harm.”

US Treasury Secretary Janet Yellen told bank CEOs on Thursday that more merges may be necessary after a series of bank failures spurred a risk=off impulse; hence, XAU/USD soared sharply.