Gold Price Forecast: XAU/USD seeks cushion above $1,780 as Fed policy outlook muddles US Dollar

• Gold price is seeking a cushion near $1,780.00 as US Dollar dwindled on the Fed policy outlook.

• The cautious market mood amid uncertainty over Fed’s policy outlook is impacting risky assets.

• A policy change from the FOMC in CY2023 would set the stage for a prolonged decline in the Greenback.

Gold price (XAU/USD) is looking to build a cushion around the immediate support of $1,782.00 in the Asian session. The precious metal was corrected after failing to surpass the critical hurdle of $1,790.00. Gold price is displaying mixed responses as uncertainty over the policy outlook by the Federal Reserve (Fed) has turned the market mood cautious.

The US Dollar index (DXY) is hovering around 105.30 in the Tokyo session. The street is having mixed views on Fed’s policy outlook. Upbeat Nonfarm Payrolls (NFP) and robust demand in the service sector have shown strength in the United States economy while expectations for higher interest rate guidance are triggering recession fears.