Gold retreats to $2,026.93, facing pressure from a strengthening US Dollar and Treasury yield uptick.
Market reevaluates Fed rate cut timeline with June odds at 50% for a potential easing.
The US 10-year Treasury yield hovering around YTD highs keeps Gold’s price capped.
Gold price retraces after hitting the 50-day Simple Moving Average (SMA) at $2,033.67 during the European session and is down 0.40% as the Greenback (USD) dives. However, a rise in the US 10-year Treasury yield and traders trimming their odds of a dovish US Federal Reserve (Fed) sponsored a leg down in the non-yielding metal. The XAU/USD trades at $2,026.93 after hitting a high of $2,037.07.
Sentiment remains mixed, though tilted slightly negative, favoring the US Dollar. Interest rate speculators have priced out a Fed rate cut in March and May. For June, the odds of a quarter of a percentage point rate cut are at 50%. The US 10-year Treasury note climbs four-and-a-half basis points to 4.295%, shy of reaching the year-to-date (YTD) high of 4.354%, though keeping the yellow metal pressured, as investors align themselves with Fed officials’ posture of three rate cuts toward the end of 2024.
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