Gold price is trading with a bearish bias on Thursday.
On Wednesday, the gold price (XAUUSD) continued its slide. The yellow metal’s additional rising potential may be limited. As the FOMC minutes were seen as much more hawkish than previous releases. The US Fed’s cautious stance to maintaining its tight policies for an extended period of time strengthens the Greenback generally. And puts some selling pressure on the gold price.
Gold dealers will be eagerly watching the preliminary release of the US.
Manufacturing and Services Purchasing Managers Index. PMI for May. A worse report might raise hopes for Fed rate reduction and boost gold. Furthermore, geopolitical concerns, uncertainties, and sticky inflation may underpin the precious metal and limit its downside in the near term. Aside from that, the Chicago Fed National Activity Index, weekly Initial Jobless Claims, New Home Sales, and the Fed’s Bostic will be the focus.
Daily Market Movers: The gold price remains vulnerable to the Fed’s aggressive comments.
According to the minutes of the FOMC’s most recent policy meeting, issued on Wednesday, “participants observed. That while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective.”
The minutes further said, “Participants assessed that preserving the current The target range for the federal funds rate at this meeting was supported by data indicating continued solid economic growth. Investors have priced in nearly a 60% chance of the first cut in September and two quarter-point reductions before the end of the year, according to the CME FedWatch Tool.
The preliminary US S&P Global Manufacturing and Service PMIs for May are predicted to remain unchanged at 50.0 and 51.3, respectively.
The People’s Bank of China (PBoC) has been the world’s greatest buyer over the last year. It added 225 tons to its gold reserves last year, the most since at least 1977.
