At the same time, U.S. economic signals painted a mixed picture: GDP shrank by 0.3% in Q1 and core PCE was flat in March, while jobless claims rose to 241,000. Yet April’s jobs report offered just enough resilience to keep the Fed on the sidelines for now, limiting gold’s near-term upside.

Fed in Focus with Powell Set to Speak on Wednesday

This week, all attention turns to the Federal Reserve. The FOMC is expected to hold rates steady on Wednesday, but Chair Powell’s press conference may carry outsized impact. Political pressure has intensified, with President Trump and Treasury Secretary Bessent openly criticizing the Fed and urging preemptive cuts. However, with Friday’s jobs report showing no clear labor market deterioration, Powell may strike a cautious tone—potentially reinforcing higher-for-longer rate expectations unless inflation or employment data worsen.

Gold Prices Forecast: Bearish Near-Term Bias as Fed Holds the Line

Gold enters the week with a bearish tilt. A firmer dollar, muted physical demand, and reduced expectations for near-term Fed cuts are all headwinds. Unless Powell surprises with dovish guidance, bullion is likely to remain under pressure.

The broader macro picture—rising fiscal stress, policy uncertainty, and central bank accumulation—still supports long-term upside. But near-term, a lack of fresh catalysts favors sellers unless Fed rhetoric or incoming data reignites rate cut speculation. Traders should brace for volatility around Wednesday’s FOMC announcement and Powell’s post-meeting remarks.

More Information in our Economic Calendar.