XAU/USD suffered from a strong downward pull, closing at $2,013.
The US will release PCE data from December and Q4 GDP preliminary estimations on Thursday.
Despite the negative action, pair holds above 100 and 200-day SMAs, hinting toward bull's control in longer run.
On Wednesday's session, the XAU/USD was spotted at $2,013 following a sturdy 0.80% downward movement. The daily chart manifests a neutral to bullish stance, however, bulls are are in command in the overall trend. Meanwhile, on a shorter timeframe, the four-hour chart displays more discernible negative action. Fundamentally speaking rising US yields ahead of key economic indicators from the US seemed to have weakened the metal.
In that sense, as the markets await fresh catalysts to continue placing their bets on the Federal Reserve (Fed) easing cycle, US yields are holding their ground, suggesting that markets are now not so confident at the bank will rush to start easing. In that sense, if yields rise, it tends to weaken the non-yielding metals as interest rates are often seen as the cost of holding metals.
Personal Consumption Expenditures (PCE) and the preliminary Q4 Gross Domestic Product (GDP) due on Thursday, will set the pace of the markets as they will give markets more guidance on the Fed’s easing calendar
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