Gold price gained pace on Tuesday.
Gold prices (XAUUSD) edged higher on Tuesday, rebounding from two-week lows of $2,325.
The weakened US dollar and increasing geopolitical concerns in the Middle East bolster the precious metal.
The rise in yellow metal is supported by a weaker US dollar (USD) and safe-haven flows amid continued geopolitical concerns in the Middle East. Higher short-term Treasury yields, after hawkish Fed minujtes and stronger US economic data, are expected to support the Greenback in the near term. Traders may prefer should remain on the sidelines ahead of major US inflation data this week.
Traders will be watching the US CB Consumer Confidence report as well as comments by Fed officials Kashkari, Daly, and Cook on Tuesday.
The US Conference Board’s Consumer Confidence report is coming on Tuesday. Along with talks by the Fed’s Neel Kashkari, Mary Daly, and Lisa Cook. On Friday, the US Core Personal Consumption Expenditures Price Index (Core CPE) will be the main focus. More hawkish comments from Fed members. As well as hints of sticky inflation, may cause traders to reconsider the first Fed rate cut. This, in turn, is likely to bolster the USD and put some downward pressure on the USD-denominated gold price.
Daily Market movers: The gold price stays robust despite the Fed’s hawkish comments and improved US data.
An Israeli airstrike ignited a fire, killing 45 people in a tent camp. Rafah, Gaza, officials announced Monday. According to Reuters, global leaders have appealed for the implementation of a World Court order to halt Israel’s attacks.
According to the minutes of the most recent Fed meeting. It will take longer than expected for the central bank to build confidence that inflation will reach its objective of 2%.
Moreover According to the CME FedWatch tool. Traders trimmed their bets on the US Federal Reserve (Fed) cutting interest rates to 49% in September, down from 63% the previous week.
The preliminary US Gross Domestic Product (GDP) Annualized is expected to increase 1.4% in Q1 from 1.6% in the previous quarter.
The US Core Personal Consumption Expenditures Price Index (Core PCE). The Fed’s favored inflation measure, is predicted to show In April. There was a 0.3% increase month on month and 2.8% year on year.
UBS analysts have boosted their gold price prediction to $2,600 by the end of 2024. Citi analysts predict that gold will hit $3,000 per ounce during the next six to eighteen months.
