In Tuesday’s session, the Gold spot price XAU/USD exhibited a trading level of $2,030, marking a 0.43% gain. This rebound suggests a temporary respite for bears following last week’s noteworthy 2% loss. The daily chart indicates a neutral-to-bearish sentiment, while the four-hour indicators show a slight upward tilt, hinting at a potential shift in momentum.
From a fundamental perspective, the surge in strong US economic data and hawkish sentiments from the Federal Reserve (Fed) triggered significant selling in metals, raising doubts about an imminent Fed rate-cutting cycle. Consequently, as markets reassess their expectations regarding the Fed, the upside potential for gold is constrained. The rising US yields, viewed as the cost of holding non-yielding metals, further limit the precious metal’s upward trajectory.
Investors are keenly watching for any signs of a sustained recovery in gold prices, which may hinge on evolving economic indicators and the Federal Reserve’s policy stance. The current market dynamics suggest a delicate balance between bearish pressures and potential shifts in sentiment, emphasizing the need for caution among traders navigating the XAU/USD landscape.
