Gold draws some sellers as the demand for safe-haven assets weakened by the risk-on attitude.
Wednesday’s Asian session sees the gold price (XAUUSD) meet new supply, which somewhat undermines the day’s slight comeback advances from a one-week low. The risk-on sentiment still supported by easing concerns over US President-elect Donald Trump’s disruptive trade tariffs and Tuesday’s lower-than-expected US inflation statistics. Consequently, this thought to be a major element reducing demand for The precious metal that is safe.
The precious metal supported by a weaker USD and geopolitical uncertainties.
The Federal Reserve’s (Fed) hawkish perspective reiterated by Friday’s positive US monthly jobs report, which also keeps the rates on US Treasury bonds high and helps divert flows away from the non-yielding price of gold. In contrast, the US dollar (USD) remains close to the weekly low that was reached on Tuesday. This supports the XAUUSD ahead of the important US Consumer Price Index (CPI) release, combined with geopolitical uncertainties.
Daily Market Update:Gold price bulls stay on the sidelines in the risk-on environment ahead of the US CPI report.
According to a Bloomberg story on Monday, which cited people with knowledge of the situation, US President-elect Donald Trump’s economic advisors are thinking about implementing a plan to raise tariffs progressively each month.
Additionally, lower than anticipated inflation statistics from the The price of gold, a safe haven, undermined by the US, which helped halt the recent spike in US Treasury bond yields and increase investors’ desire for riskier assets.
The Producer Price Index, a barometer of wholesale inflation, increased by 0.2% in December, while the core indicator unchanged, according to a report released Tuesday by the US Bureau of Labor Statistics.
This keeps the US dollar bulls on the defensive since it makes it hard for investors to predict the Federal Reserve’s next interest rate actions, especially after Friday’s positive US monthly jobs data.
Ukraine unleashed the biggest airstrikes against Russia since the war began.
Nearly three years ago, Ukraine unleashed the biggest airstrikes against Russia since the war began. The Russian military declared that they will not ignore the strikes and fired further projectiles in the direction of Ukraine.
At least 13 Palestinians killed Tuesday when Israel upped its airstrikes and conducted heavy strikes on Gaza. After lengthy talks in Qatar, negotiators are getting close to a deal on the truce in Gaza.
For additional information about the Fed’s policy stance, traders now anticipate the US Consumer Price Index (CPI) report, which will fuel demand for the USD and provide the XAUUSD some significant momentum.
