Gold price is seen consolidating its recent strong gains to an all-time peak touched on Monday.
Expectations that the Fed may delay cutting interest rates cap gains amid overbought conditions.
Elevated US bond yields underpin the USD and contribute to capping the upside for the XAU/USD.
Gold price (XAU/USD) enters a bullish consolidation phase during the Asian session on Tuesday and oscillates in a range below the $2,350 level, or the all-time peak touched the previous day. Expectations that the Federal Reserve (Fed) could delay cutting interest rates keep the US Treasury bond yields elevated and act as a tailwind for the US Dollar. This, along with a generally positive risk tone, holds back bulls from placing fresh bets around the non-yielding yellow metal amid extremely overstretched conditions on the daily chart.
Meanwhile, any meaningful corrective decline still seems elusive in the wake of fading optimism over talks on a potential Israel-Hamas ceasefire and the protracted Russia-Ukraine war, which might continue to underpin the safe-haven Gold price. Investors might also prefer to wait for more cues about the Fed's rate-cut path before placing fresh bets. Hence, the focus will remain on the release of the US consumer inflation figures for March and the FOMC minutes on Wednesday, which will provide a fresh directional impetus to the XAU/USD.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.