Gold Price Forecast: Will XAU/USD Recover?

<p>&nbsp;Gold prices challenged the $1,963 support level early on Tuesday.</p><p>The United States Dollar (USD) experienced a decline after the announcement of China's economic stimulus package ahead of the release of US Consumer Confidence data.</p><p>Gold prices maintained strong gains above $1,950, recovering from a six-day low earlier on Tuesday.</p><p>China's announced economic stimulus package has revived gold prices</p><p><br /></p><p>On Monday, China's top leader pledged to increase policy support for the economy in an effort to tackle the post-Covid recovery.</p><p><br /></p><p>China's national financial institutions have predicted rate and tax cuts by the authorities.</p><p><br /></p><p>Stocks in China and Hong Kong have soared on optimism of the economic stimulus package.</p><p><br /></p><p>Focus on the FED</p><p><br /></p><p>Financial markets remained relatively calm earlier today as investors awaited the outcome of the United States Central Bank's (Fed) policy meeting.</p><p><br /></p><p>Following the announcement of the rate decision and policy statement that will be announced early in the morning, Chairman Jerome Powell will give a speech on the policy outlook and answer questions in a press conference.</p><p><br /></p><p><br /></p><p>Markets expect the FED to raise interest rates by 25 basis points.</p><p><br /></p><p>However, based on our observations, the announcement of interest rate hikes will not have a significant volatility impact on the market.</p><p><br /></p><p>This is because investors focus and pay attention to the indications and steps that the FED will take next in the speech session later on setting the next interest rate hike whether to stop for a while or not.</p><p><br /></p><p>Gold Price Technical Analysis: “Daily Chart”</p><p><br /></p><p><br /></p><p>The price of gold was trading lower last Tuesday, and has done a "Dip Buy" at the $1950 price level.</p><p><br /></p><p>In today's London trading session, the price of gold is seen playing around the $1,970 level.</p><p><br /></p><p>If today's gold trading session closes above the price level of $1,970-$1,987, the market will see the price of gold to form a "New High" pattern for July 2023 which is expected around the price level of $2,000.</p><p><br /></p><p>But if it's the other way around, the $1,940 level will be a strong "Support". However, if the selling pressure of the gold price is seen to increase, then $1,918 is seen to be the focus of investors' "Dip Buy".</p>