Advertisements
Home Gold News Gold Price Gains Fresh Bids, Hovers Near Two-Week High on Weaker US Dollar

Gold Price Gains Fresh Bids, Hovers Near Two-Week High on Weaker US Dollar

by anna

Gold price (XAU/USD) is experiencing renewed buying interest after a modest decline in the previous session and remains well within reach of a two-week high reached last Thursday. The weakening US Dollar (USD), marked by a fresh drop in US Treasury bond yields, is contributing to the positive momentum in the precious metal. Additionally, persistent concerns over geopolitical tensions in the Middle East are supporting gold’s role as a safe-haven asset.

Despite these factors supporting gold, significant upward movements may be constrained by expectations of a hawkish stance from the Federal Reserve (Fed). The release of the FOMC meeting minutes last week, coupled with statements from several Fed officials, indicated the central bank’s commitment to maintaining higher interest rates for an extended period, citing sticky inflation and a resilient economy. This stance is expected to boost US bond yields and the Greenback, potentially limiting aggressive bullish bets on gold.

Advertisements

Traders are now turning their attention to key US macroeconomic data, including Durable Goods Orders, the Conference Board’s Consumer Confidence Index, and the Richmond Manufacturing Index, scheduled for release later on Tuesday. The focus remains on the US Personal Consumption Expenditures (PCE) Price Index on Thursday, which is anticipated to offer insights into the Fed’s future rate path and could influence the directional movement of gold.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com