On Wednesday, gold staged a modest recovery, rebounding from consecutive negative sessions earlier in the week as geopolitical concerns began to ease. Despite the backdrop of better-than-expected economic indicators from the United States (US), including a robust US Dollar and higher US Treasury yields, investors seized the opportunity to buy into the latest dip in the golden metal.
However, despite the buying interest, gold closed Wednesday’s session with a marginal loss of 0.25%. XAU/USD was seen trading at $2,317, representing a modest decline of 0.05%. The apparent de-escalation of the Middle East conflict, particularly following the recent exchanges between Iran and Israel, contributed to a reduction in geopolitical tensions.
Furthermore, market sentiment shifted as expectations for a Federal Reserve (Fed) rate cut in June and July dissipated. Most market participants now speculate that any reduction in the fed funds rate will likely occur for the first time in September 2024.
In terms of economic data, the US Department of Commerce reported that March’s Durable Goods Orders exceeded estimates and surpassed February’s figures. However, core sales fell short of projections but showed signs of improvement compared to the previous month. These mixed economic indicators contributed to the nuanced trading dynamics in the gold market.
