Gold failed to build on its weekly advances during the last three days.
The gold price (XAUUSD) continues to struggle to break above the $2,200 barrier. Oscillating in a range during Thursday’s Asian session.
The XAUUSD is under pressure because to Fed Chairman Waller’s hawkish remarks overnight.
The overnight hawkish statements of Federal Reserve (Fed) Governor Christopher Waller dampened rate cut optimism. And moved the US Dollar (USD) back towards the monthly high. This, in turn, is viewed as a critical factor acting as a headwind for the non yielding
Yellow metal, yet any major decline is elusive. As traders wait for more clues regarding the Fed’s policy course before placing new directional wagers.
Last week, the Fed anticipated a less restrictive monetary policy in the future. Indicating that interest rates will be slashed by 75 basis points in 2024. However, the incoming US macro data indicated that the economy is in strong form. And that inflation is sticky, allowing the Fed to keep rates higher for longer. As a result, Friday’s release of the US Personal Consumption Expenditures (PCE) Price Index may influence expectations regarding the Fed’s rate-cutting path. Driving the USD and providing further impetus to the gold price.
Daily Market Movers: Gold prices struggle to attract Buyers face mixed fundamental cues.
Federal Reserve (Fed) Governor Christopher Waller stated on Wednesday. That he was not in a hurry to decrease interest rates in the light of higher inflation readings in recent months. Strengthening the US dollar and curbing gold price advances.
Waller did, however, warn that continued expected progress in lowering inflation will make it acceptable for the Fed to begin cutting interest rates later this year. Which is considered as a tailwind for the non-yielding yellow metal.
Furthermore, the Fed last week anticipated three 25 basis point interest rate decreases by the end of the year, and markets are now pricing in a higher possibility of the first move at the June FOMC monetary policy meeting.
Apart from Geopolitical dangers from the protracted Russia-Ukraine war, as well as ongoing conflicts in the Middle East, should help restrict any substantial correction in the safe-haven precious metal’s price.
Traders looking to Thursday’s US economic docket, which includes the release of the final Q4 GDP, jobless claims.
Traders are now looking to Thursday’s US economic docket, which includes the release of the final Q4 GDP print, the customary Weekly Initial Jobless Claims, pending home sales, and the updated Michigan Consumer Sentiment Index.
