Forecast for the Gold Price: XAU/USD extends Fed-inspired rebound from $1,960 on yield softening

Gold price (XAU/USD) anticipates a rematch with the $2,000 threshold by extending Federal Reserve (Fed)-induced gains amid declining US Treasury bond yields and the U.S. dollar. Notably, despite US Treasury Secretary Janet Yellen's rejection of "blanket insurance" for deposits, fading concerns of a banking crisis appear to be propelling XAU/USD prices as of late.

Nevertheless, the Fed delivered 25 basis points (bps) of a rate hike, but the Rate Statement and dot-plot raised concerns of future dovish moves, which in turn weighed down the US Dollar, despite the fact that Fed Chair Powell ruled out demands for a rate cut in 2023. Aside from this, US stock futures and Asia-Pacific equities post modest gains as China-related optimism combines with declining yields.

In the future, second-tier statistics and monetary policy moves of the Bank of England (BoE) and Swiss National Bank (SNB) may be of interest to Gold traders as proponents anticipate more dovish rate increases in light of the impending banking crisis.