The post Gold price seems vulnerable ahead of US CPI and FOMC decision on Wednesday appeared on BitcoinEthereumNews.com.

Gold price stalls the previous day’s recovery move from its lowest level in over a month. Reduced bets for a September Fed rate cut underpin the USD and cap the yellow metal. Renewed political uncertainty in Europe and geopolitical risks should limit the downside. Traders also seem reluctant ahead of the US CPI and the FOMC decision on Wednesday. Gold price (XAU/USD) gained some positive traction on the first day of a new week and reversed a part of Friday’s post-NFP slump to the $2,287-2,286 area, or over a one-month low. The uptick, however, remains capped in the wake of a bullish US Dollar (USD), which tends to undermine demand for the USD-denominated commodity. The stronger-than-expected US monthly jobs report released on Friday forced investors to scale back their bets for an imminent interest rate cut by the Federal Reserve (Fed) in September. This keeps the US Treasury bond yields elevated and assists the USD to stand tall near a multi-week high touched on Monday. Furthermore, the People’s Bank of China (PBoC) reported no change to its gold holdings in May, marking an end to its one-and-a-half-year-long buying spree. This further contributes to keeping a lid on the Gold price, though political uncertainty in Europe should help limit the downside. Traders might also prefer to wait on the sidelines ahead of this week’s release of the latest US consumer inflation figures and the highly-anticipated FOMC monetary policy decision on Wednesday. Investors will look for cues about the likely timing when the Fed will begin cutting rates, which will determine the near-term trajectory for the non-yielding yellow metal.  Daily Digest Market Movers: Gold price struggles to lure buyers amid hawkish Fed expectations, bullish USD The upbeat US Nonfarm Payrolls released on Friday fueled speculations that the Federal Reserve will keep rates…

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Filed under: News - @ June 11, 2024 2:00 am