Gold prices (XAU/USD) experienced a pullback from all-time highs of $2,223 on Thursday, breaking below the key $2,200 level and registering losses of 0.29%. The decline coincided with a resurgence of the Greenback and a stabilization of US Treasury yields, prompting a risk-off sentiment in the market. This lack of demand above the $2,200 threshold led to a downward movement in XAU/USD towards the $2,179 mark.
The financial markets continued to digest the Federal Reserve’s (Fed) dovish stance following its March 21 meeting. Fed Chairman Jerome Powell and his colleagues acknowledged the robustness of the economy, noting a gradual cooling of the labor market and persistent high inflation levels, albeit lower than the levels observed in the 1980s.
While Fed officials reiterated their projection of three rate hikes in 2024, they emphasized that policy adjustments would remain data-dependent, particularly regarding the evolution of the disinflation process. Meanwhile, the US 10-year Treasury yield benchmark note showed signs of stabilization after earlier losses, while the US Dollar Index (DXY) recorded gains of 0.58% at 103.98, contributing to the downward pressure on gold prices.
