Gold continues its three-day rally, buoyed by falling US Treasury yields and a weakening US Dollar.
Recent US economic data, including underperforming GDP and stable core PCE inflation rates, increasing expectations for Fed holding rates.
Attention now turns to the US Federal Reserve's monetary policy decision on May 1 and forthcoming Nonfarm Payrolls data.
Gold's price extends its gains for the third straight day, yet it remains within familiar levels, with traders bracing for the US Federal Reserve’s (Fed) monetary policy decision on May 1. Last week, data from the United States (US) showed that Gross Domestic Product (GDP) missed the mark, while the Fed’s preferred gauge for inflation, the Core Personal Consumption Expenditure Price Index (PCE), stalled for the second straight month at 2.8% YoY.
The XAU/USD bounces off daily lows of $2,320 and trades at $2,340, courtesy of an improvement in risk appetite, lower US Treasury yields, and a weak US Dollar (USD). The Fed is expected to keep interest rates on hold following Fed Chairman Jerome Powell’s remarks in which he said the current monetary policy stance is appropriate due to the lack of progress on curbing inflation. Besides that, Investors will be eyeing the release of US Nonfarm Payrolls figures on Friday.
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