During Wednesday’s Asian trading hours, gold prices (XAU/USD) attracted buyers, driven by safe-haven demand amidst geopolitical tensions and ongoing central bank purchases. The combination of uncertainty and geopolitical risks has contributed to a potential rally in gold.
However, the recent hawkish comments from Federal Reserve (Fed) officials have tempered expectations for interest rate cuts in 2024, despite weaker-than-expected US employment reports for April. This sentiment could exert downward pressure on the precious metal.
Later on Wednesday, Fed policymakers including Philip Jefferson, Susan Collins, and Lisa Cook are scheduled to speak. Any hawkish commentary from these officials could bolster the US Dollar (USD) and potentially weigh on USD-denominated gold prices.
Gold traders will closely monitor the release of consumer sentiment data from the University of Michigan on Friday, which could provide further insights into market sentiment and impact gold prices accordingly.
