Gold price fails to capitalize on its weekly gains registered over the past three days.
The overnight hawkish remarks by Fed’s Waller act as a headwind for the XAU/USD.
The downside seems limited as traders await more cues about the Fed’s rate-cut path.
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark and oscillates in a range during the Asian session on Thursday. The overnight hawkish remarks from Federal Reserve (Fed) Governor Christopher Waller cooled rate cut hopes and pushed the US Dollar (USD) back closer to the monthly top. This, in turn, is seen as a key factor acting as a headwind for the non-yielding yellow metal, though any meaningful slide seems elusive as traders await more cues about the Fed's policy path before placing fresh directional bets.
Last week, the Fed projected a less restrictive monetary policy going forward and indicated that it remains on track to cut interest rates by 75 basis points in 2024. That said, the incoming US macro data suggested that the economy is in good shape and pointed to still-sticky inflation, which should allow the Fed to keep rates higher for longer. Hence, Friday's release of the US Personal Consumption Expenditures (PCE) Price Index will influence expectations about the Fed's rate-cut path, which will drive the USD and provide fresh impetus to the Gold price.
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