Gold (XAUUSD) remains within the range: the Fed is in the spotlight

Gold (XAUUSD) is consolidating around 2,650 USD, with the market awaiting news from the Federal Reserve. Find out more in our analysis for 18 December 2024.

XAUUSD forecast: key trading points

• Market focus: Gold (XAUUSD) remains flat without any news from the Federal Reserve
• Current trend: the asset’s prospects depend on the Federal Reserve signals for 2025
• XAUUSD forecast for 18 December 2024: 2,690.00 and 2,735.25

Fundamental analysis

Gold (XAUUSD) prices hover around 2,650 USD per troy ounce on Wednesday.

Consolidation is a natural development ahead of today’s US Federal Reserve interest rate decision. The Fed’s December meeting will conclude this evening. The baseline scenario suggests a 25-basis-point Federal Reserve rate cut. The market will look for clues about how the Fed intends to act in 2025 amid multiple uncertainties around monetary policy and the country’s economy.

Gold prices have risen 28% this year, which could be the highest annual gain since 2010 by the end of the year. This was primarily due to the Federal Reserve’s monetary policy easing, demand for safe-haven assets, and systematic purchases of Gold by global central banks.

The XAUUSD forecast is currently neutral.

XAUUSD technical analysis

The XAUUSD H4 chart shows conditions for a corrective movement to 2,634.70. Today, 18 December 2024, the instrument could advance to 2,690.00. If the price breaks above this level, the market might reach the local target of 2,735.25.

The Elliott Wave structure and wave matrix, with a pivot point at 2,674.00, technically support this scenario. For the XAUUSD pair, this signal will drive further movement in alignment with the trend.

Locally, a consolidation range is forming around the central line of an envelope, suggesting that the trend could extend towards 2,735.25.

Summary

Gold (XAUUSD) has paused ahead of the Fed’s comments on its 2025 plans. Technical signals provide a foundation for upward momentum in the XAUUSD rate. The 2,690.00 and 2,735.25 levels remain significant.