The post Gold price consolidates amid geopolitical risks, reduced bets for 50 bps Fed rate cut appeared on BitcoinEthereumNews.com.

Gold price failed to build on the overnight positive move in the wake of the upbeat US data. Easing US recession fears boost investors’ confidence and contribute to capping the metal. Geopolitical risks and bets on an imminent start of the Fed’s rate-cutting cycle lend support. Gold price (XAU/USD) attracted some dip-buying near the $2,432 area on Thursday and climbed over 1.5% intraday amid the risk of widening conflict in the Middle East. The precious metal, however, stalled the intraday move up near the $2,470 hurdle following the release of the upbeat US macro data, which eased fears of a recession in the world’s largest economy and dashed hopes for a more aggressive policy easing by the Federal Reserve (Fed). This, in turn, pushed the US Treasury bond yields and provided a goodish lift to the US Dollar (USD). Apart from this, the risk-on rally in the US equity markets contributed to capping gains for the commodity.  Nevertheless, the Gold price settled with modest intraday gains, snapping a two-day losing streak, and held steady above the $2,450 level during the Asian session on Friday. Investors still seem convinced that the Fed will begin its rate-cutting cycle in September. This keeps a lid on any meaningful upside for the US bond yields and the USD, which, in turn, continues to act as a tailwind for the non-yielding yellow metal. Traders now look to the second-tier US macro data – Building Starts and Housing Permits, along with the Preliminary Michigan Consumer Sentiment Index – for short-term opportunities later during the early North American session.  Daily Digest Market Movers: Gold price struggles to lure buyers amid mixed fundamental backdrop Persistent geopolitical tensions stemming from the ongoing conflicts in the Middle East and the protracted Russia-Ukraine war assisted the safe-haven Gold price to regain…

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Filed under: News - @ August 16, 2024 2:18 am