Gold holds to recent gains post Fed’s decision

Gold price clings to gains prompted by paused monetary policy from the Fed. Weak US private payrolls and factory data have diminished the appeal of the US dollar. The release of the US NFP would guide further action on the precious metal.

As of this writing, gold is trading at $1983.50. The price continues to rise as a result of the Fed’s decision to maintain a stable interest rate. In addition, gold wants to increase its gains in the expectation that the Fed’s rate-tightening campaign is over.

Fed Chair Jerome Powell said progress was being made with inflation and whilst another rate hike was not out of the question, Powell sounded less committed to the idea. As a result, gold gained strength and the US dollar declined.

The downside in the yellow metal also remains cushioned due to Middle East conflicts and mixed US data. US private payrolls and Manufacturing PMI for October failed to meet expectations.

Going forward, the gold price and the US Dollar would be impacted by the Nonfarm Payrolls (NFP) for October. Investors would keenly watch for wage growth as it will exhibit a consumer spending outlook.