The post Gold holds steady above one-week low on softer USD; upside seems limited appeared on BitcoinEthereumNews.com.

Gold price stages a modest bounce from a one-week trough touched earlier this Monday. Geopolitical tensions, softer US bond yields and USD benefit the safe-haven XAU/USD. Bets for a less dovish Fed warrant caution for bull ahead of the FOMC meeting this week. Gold price (XAU/USD) struggles to capitalize on its modest intraday bounce from a one-week low, around the $2,644-2,643 area touched during the Asian session on Monday amid expectations for a less dovish Federal Reserve (Fed). In fact, investors now seem convinced that the Fed will adopt a more cautious stance on cutting rates next year amid signs that the progress in lowering inflation toward the 2% target has stalled. This, in turn, remains supportive of elevated US Treasury bond yields and turns out to be a key factor acting as a headwind for the non-yielding yellow metal.  Traders also seem reluctant to place aggressive directional bets around the Gold price and might opt to wait on the sidelines ahead of the crucial FOMC policy decision on Wednesday. Heading into the key central bank event risk, a modest pullback in the US bond yields keeps the USD bulls on the defensive. Apart from this, geopolitical tensions and uncertainties over US President-elect Donald Trump’s policies might continue to offer some support to the safe-haven precious metal. Traders now look to the release of the flash global PMIs to grab short-term opportunities.  Gold price bulls remain on the sidelines amid bets for a less dovish Fed Israel agreed on plans to allocate state money to expand its presence and double its population in the occupied Golan Heights, raising the risk of a further escalation of tensions in the region.  Israeli strikes in Gaza killed at least 53 Palestinians, while the Israeli military said that its air and ground forces in…

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Filed under: News - @ December 16, 2024 6:16 am