Daily Digest Market Movers: Gold price consolidates as traders await more cues about the Fed’s rate-cut path
- The Federal Reserve last week projected a less restrictive monetary policy going forward and signaled three rate cuts by year-end, which act as a tailwind for the non-yielding Gold price.
- Russia ramped up its attacks on Ukrainian energy infrastructure in response to a spate of recent drone strikes on its oil refineries by the latter, raising the risk of a further escalation of tensions.
- Iran-backed Houthi militants on Tuesday said they had mounted six attacks on ships in the Gulf of Aden and the Red Sea over the past 72 hours, tempering investors' appetite for riskier assets.
- The US Dollar adds to the previous day's modest gains that followed data showing that US Durable Goods Orders data rose by 1.4% in February as compared to the 6.2% slump in the previous month.
- Separately, the Conference Board reported that the US Consumer Confidence Index dipped to 104.7 in March, little changed from the previous month's reading of 104.8 amid fading fears of a recession.
- Furthermore, consumers' inflation expectations ticked up to 5.3% during the reported month from 5.2% in February, which might force the Federal Reserve to keep interest rates higher for longer.
- The outlook keeps the yield on the benchmark 10-year US government bond afloat above the 4.0% threshold and continues to underpin the Greenback, warranting caution for the XAU/USD bulls.
- Traders might also prefer to wait for the release of the US Personal Consumption and Expenditure (PCE) Price Index for more cues about the Fed's policy path and before placing fresh directional bets.
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