Gold price remains confined in a narrow band for the second straight day on Thursday.
Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity.
Traders now await key US macro data before positioning for the near-term trajectory.
Gold price (XAU/USD) extends its consolidative price move above the $2,300 mark during the Asian session on Thursday as traders more cues about the Federal Reserve's (Fed) rate-cut path before placing fresh directional bets. Hence, the focus will remain glued to key US macro data – the Advance Q1 GDP report due later today and the Personal Consumption Expenditures (PCE) Price Index on Friday. This will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the commodity. In the meantime, the recent hawkish remarks by several Fed officials suggested that the central bank is in no rush to cut interest rates.
Moreover, stronger US consumer inflation figures forced investors to scale back their expectations about the timing of the first rate cut to September and downsize the number of rate cuts in 2024. This keeps the US Treasury bond yields elevated and acts as a headwind for the non-yielding Gold price. Apart from this, easing concerns about a major escalation of the Middle East crisis continues to cap the safe-haven XAU/USD.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.