The post Gold price bulls remain on the sidelines amid reduced bets for a larger Fed rate cut appeared on BitcoinEthereumNews.com.

Gold price drifted lower following the release of the crucial US CPI report on Wednesday.  Diminishing odds for a 50-bps rate cut in September lifts the US bond yields and the USD. The prospects for an imminent start of the Fed’s policy-easing cycle offer some support. Gold price (XAU/USD) witnessed an intraday pullback from the vicinity of the all-time peak on Wednesday after the latest US consumer inflation figures dashed hopes for a larger interest rate cut by the Federal Reserve (Fed) in September. Apart from this, the risk-on impulse further undermined the safe-haven precious metal, which settled in the red for the first time in three days. That said, the prospects for an imminent start of the Fed’s policy-easing cycle assisted the non-yielding yellow metal to find some support and bounce off the $2,500 psychological mark.  Furthermore, investors expect the US central bank to lower interest rates by 25 basis points (bps) at each of the three remaining policy meetings in 2024. This, in turn, acts as a tailwind for the Gold price during the Asian session on Thursday. The upside, however, remains capped amid the emergence of some US Dollar (USD) buying, bolstered by a pickup in the US Treasury bond yields. Moreover, the XAU/USD remains confined in a multi-week-old trading range, warranting some caution for aggressive traders and positioning for a firm near-term direction.  Daily Digest Market Movers: Gold price struggles to gain traction as traders trim bets for aggressive Fed policy easing Gold price fell on Wednesday after the crucial US Consumer Price Index (CPI) report forced investors to scale back their expectations of a larger, 50-basis-points interest rate cut by the Federal Reserve next week. The US Bureau of Labor Statistics reported that the headline CPI rose 0.2% in August and the yearly rate decelerated…

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Filed under: News - @ September 12, 2024 3:07 am