Gold prices, represented by XAU/USD, experienced a loss of momentum on Tuesday after reaching a record high earlier. The absence of significant catalysts during a subdued session, particularly in terms of top-tier economic data, may curtail the precious metal’s upward trajectory.
However, several factors including increased speculation on interest rate cuts by the US Federal Reserve (Fed), ongoing geopolitical tensions, and sustained demand from central banks and Asian buyers could offer some support to gold.
Market participants will closely monitor statements from Fed officials, including Waller, Williams, Barr, Bostic, Collins, and Mester, scheduled to speak later on Tuesday. Additionally, anticipation builds for the release of the FOMC Minutes on Wednesday. Notably, any hawkish remarks from Fed officials are likely to bolster the US dollar and exert downward pressure on USD-denominated gold prices.
