Gold (XAU/USD) faced challenges in leveraging its rebound from the $2,300 level, hovering within a narrow range during Wednesday’s European session. The precious metal has maintained a stable trading corridor over the past week and a half as market participants await clarity on the Federal Reserve’s stance on interest rate cuts.
Following its June policy meeting, the US central bank adopted a more cautious approach, projecting only one rate cut for the year. Despite this, market sentiment continues to factor in the potential for two rate reductions in 2024, fueled by indications of easing inflation in the United States. Weaker-than-expected US Retail Sales data released on Tuesday further bolstered expectations of a Fed rate cut in September, with additional cuts anticipated by December.
Traders remain cautious, awaiting further developments from the Fed that could influence gold’s next directional move amid ongoing economic uncertainties.
