Gold price gains some positive traction on Wednesday amid a softer US Dollar.
Despite the warmer US CPI report, June Fed rate cut bets undermine the buck.
Geopolitical risks stemming from conflicts in the Middle East also lend support.
Gold price (XAU/USD) attracts some dip-buying during the Asian session on Wednesday and reverses a part of the previous day's profit-taking slide to the $2,150 area, or the weekly low. The US Treasury bond yields ticked higher on Tuesday after the US consumer inflation for February came in a bit warmer than expected, which, in turn, boosted the US Dollar (USD) and exerted some downward pressure on the commodity. Furthermore, an extension of the bullish run in the US equity markets further contributed to driving flows away from the safe-haven precious metal.
The markets, however, are still pricing in a greater chance that the Federal Reserve (Fed) will start cutting interest rates at the June policy meeting. This keeps a lid on the US bond yields and the Greenback, which, in turn, helps limit the downside for the non-yielding Gold price. Traders also seem reluctant to place aggressive bearish bets around the safe-haven XAU/USD amid geopolitical risks and expectations that the global economy might weaken in 2024. Investors might also prefer to move to the sidelines ahead of the crucial FOMC monetary policy meeting next week.
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