Gold prices (XAU/USD) face resistance in capitalizing on intraday gains, retreating to the lower end of the daily range around the $2,332-$2,331 zone during the first half of the European session. The release of a hotter-than-expected US Consumer Price Index (CPI) report on Wednesday has fueled speculations that the Federal Reserve (Fed) may delay interest rate cuts. Furthermore, minutes from the March FOMC meeting suggest that the central bank could maintain higher interest rates for an extended period, bolstering the US Dollar (USD) near its year-to-date peak and posing challenges for the non-yielding yellow metal.
Against this backdrop, hawkish Fed expectations and concerns regarding the escalating Middle East crisis continue to weigh on investor sentiment, fostering a cautious market mood. This sentiment should theoretically bolster the safe-haven appeal of Gold and help mitigate any substantial corrective slides from its all-time peak. Consequently, it remains prudent to await strong follow-through selling before confirming that XAU/USD has reached its peak.
Market participants are now eagerly awaiting the release of US macro data, including Weekly Initial Jobless Claims and the Producer Price Index (PPI), as well as any forthcoming statements from Federal Reserve officials, in search of short-term trading opportunities.
