Gold price attracts fresh buyers on Thursday following the previous day’s US CPI-inspired downfall.
Geopolitical risks benefit the safe-haven XAU/USD amid a modest USD pullback from the YTD peak.
Reduced bets for an early interest rate cut by the Fed might cap gains amid overbought conditions.
Gold price (XAU/USD) witnessed some selling on Wednesday and retreated from the all-time peak touched the previous day in reaction to hotter US consumer inflation figures, which tempered hopes for an imminent rate cut by the Federal Reserve (Fed). The precious metal, however, stalls the intraday slide near the $2,319 region and regains some positive traction during the Asian session on Thursday amid a generally weaker tone around the equity markets.
Expectations that the Fed will keep interest rates higher for longer, along with concerns over the worsening Middle East crisis, weigh on investors' sentiment and benefit the safe-haven Gold price. Meanwhile, a modest pullback in the US Treasury bond yields prompts some US Dollar (USD) profit-taking and turns out to be another factor lending support to the non-yielding yellow metal. Traders now look to the US PPI print and Fedspeak for short-term opportunities.
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