• Gold price seesaws near multi-day high after rising the most in two weeks.
• XAU/USD rallies on Federal Reserve’s dovish hike, softer United States data.
• Downbeat US Dollar, Treasury bond yields add strength to the Gold price upside.
• Monetary policy decisions from other major central banks, US Nonfarm Payrolls will be crucial for clear directions.

Gold price (XAU/USD) makes rounds to the highest levels since late April 2022, close to $1,955 during the mid-Asian session on Thursday. In doing so, the yellow metal extends the US Federal Reserve (Fed) inspired run-up ahead of other major central bank announcements, as well as the US Nonfarm Payrolls (NFP).

Federal Reserve propels Gold price via dovish hike

Despite matching the market forecasts of 0.25% rate hike, the US Federal Reserve (Fed) managed to please the Gold buyers while mentioning in the Monetary Policy Statement that the inflation “has eased somewhat but remains elevated”.

Also bolstering the XAU/USD run-up was Fed Chair Powell’s press conference as the policy hawk surprised markets by saying, “We can declare that a deflationary process has begun.” The policymaker also accepts the need for rate cuts during late 2023 if inflation comes down much faster. Fed’s Powell also suggested that a couple more rate hikes are needed to reach it.