The post Gold price drifts lower on Fed rate jitters, $2,300 mark hold the key for bulls appeared on BitcoinEthereumNews.com.

Gold price kicks off the new week on a weaker note amid the Fed’s hawkish outlook.  Geopolitical risks and political uncertainty could lend support to the safe-haven metal. The recent repeated failures near the 50-day SMA support prospects for deeper losses. Gold price (XAU/USD) struggles to capitalize on Friday’s positive move and attracts fresh sellers on the first day of a new week. The commodity maintains its offered tone through the Asian session and currently trades below the $2,325 level, down around 0.40% for the day. The Federal Reserve’s (Fed) hawkish surprise last week, forecasting only one interest rate cut in 2024, remains supportive of elevated US Treasury bond yields. This allows the US Dollar (USD) to stand tall near its highest level since early May touched on Friday and exerts some downward pressure on the non-yielding yellow metal. That said, signs of easing inflationary pressures in the United States (US) keep the door open for at least two rate cuts this year, which, in turn, is holding back the USD bulls from placing aggressive bets. Apart from this, persistent geopolitical tensions in the Middle East, along with political uncertainty in Europe, could lend some support to the safe haven Gold price and help limit any further downside. This makes it prudent to wait for strong follow-through selling before positioning for the resumption of the previous metal’s recent pullback from the all-time peak, around the $2,350 region touched in May.  Daily Digest Market Movers: Gold price is pressured by the hawkish Fed-inspired USD strength The Federal Reserve adopted a more hawkish stance at the end of the June policy meeting, which continues to act as a tailwind for the US Dollar and is seen undermining the non-yielding Gold price.  That said, weaker US consumer and producer prices data released last…

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Filed under: News - @ June 17, 2024 3:20 am