Gold price consolidates around $2,650 area as traders await FOMC Minutes
The post Gold price consolidates around $2,650 area as traders await FOMC Minutes appeared on BitcoinEthereumNews.com.
Gold price struggles to attract buyers amid the Fed’s hawkish stance and elevated US bond yields. Trade war fears and geopolitical risks lend support to the XAU/USD amid a modest USD downtick. Investors look to the US macro data and FOMC meeting Minutes for some meaningful impetus. Gold price (XAU/USD) stabilizes following the previous day’s late pullback from the $2,665 hurdle as traders opt to move to the sidelines ahead of Wednesday’s release of the FOMC Minutes later during the US session. In the meantime, the prospects for slower rate cuts by the Federal Reserve (Fed) continue to push the US Treasury bond yields higher and act as a headwind for the non-yielding yellow metal. Apart from this, the underlying strong US Dollar (USD) bullish tone turns out to be another factor that contributes to capping the commodity. The downside for the Gold price, however, remains cushioned in the wake of the uncertainty around US President-elect Donald Trump’s tariff plans. Furthermore, expectations that Trump’s protectionist policies could reignite inflation should benefit the bullion’s status as a hedge against rising prices. This, along with trade war fears, geopolitical risks and the risk-off mood, should continue to offer some support to the safe-haven precious metal and warrants some caution before placing aggressive bets or positioning for a firm intraday direction. Gold price traders seem non-committed amid mixed fundamental cues The US Treasury bond yields and the US Dollar jumped on Tuesday after strong US data reaffirmed market expectations that the Federal Reserve will slow the pace of its rate-cutting cycle this year. The Institute for Supply Management reported that its Non-Manufacturing Purchasing Managers’ Index (PMI) rose to 54.1 in December and the Prices Paid component rose to a nearly two-year high. Separately, the Job Openings and Labor Turnover Survey, or JOLTS report,…
Filed under: News - @ January 8, 2025 4:18 am