The Gold price (XAU/USD) is struggling to gain momentum in the first half of the European session on Tuesday, hovering near a one-week low around the $2,015 region reached in the previous session. The precious metal faces challenges as expectations grow that the Federal Reserve (Fed) will maintain higher interest rates for an extended period. This sentiment acts as a headwind for Gold, limiting its upward movement amid a modest US Dollar (USD) profit-taking slide from nearly a three-month high.
While the USD exerts pressure, the downside for Gold is cushioned by a cautious market mood, geopolitical risks, and ongoing concerns about the deceleration of economic growth in China. These factors contribute to a supportive environment for the safe-haven precious metal.
The absence of significant market-moving data from the US puts the USD in the hands of influential Federal Open Market Committee (FOMC) members’ speeches. Investors will closely monitor these statements, along with the broader risk sentiment, to gauge potential impacts on XAU/USD and provide direction to the gold market.
